ENABLING RURAL PUBLICTRANSPORT

Urban Mass Transit Company LimitedIInd Floor, Corporate TowerAmbience MallGurgaon - 122002

INTRODUCTION TO RURALAREAS

Rural Areas

• 68 % is Rural Population• Decadal Population

Growth rate is 12.18%as compared toNational average17.64%1

1. http://censusindia.gov.in/2011-prov-results/data_files/india/Final_PPT_2011_chapter3.pdf2 NSSO july 2012- july 2013http://planningcommission.nic.in/news/ddigest/dec14/Daily%20Digest%2022th%20December%202014%20.pdf

• Agriculture’s share within India’s rural GDP isalready now down to 17 %2

• 75% of all new factories and 70% of manufacturingjobs created in the last decade were in ruralareas2

Core Movement Requirements inRural Areas

• Core Level ofMovement requirementsin Rural Areas– Health– Education– Agri. Markets– Non Farming business– Water

Walk18%

Cycle20%

Personalmodes

41%

Bus21%

Mode of travel in settlements size (500 -5000)

NonAgricultural 6%

AgricultureRelated

35%

HigherEducation

36%

Social10%

Shopping4%

HealthCenter/Clinic

3%

Weekly Haat6%

Source: WGREP (7th Five year Plan)

Rural Accessibility - PMGSY• Rural Roads comprise over

85% of road network ofcountry

• Total length of the road is4,20,637 kms under PMGSY

• 97,838 habitations have beenconnected.

• Robust road network• Excellent connectivity to Basic

amenities• Economy booster for Villages• Positive impact on rural

development

PMGSY and Rural DevelopmentA

GRI

CUL

TURE •Business

higher by1.7%

•Agriculturallaborer hasbeen higherby 0.5%

•positive shifttowardstrade andbusiness

•EconomicalFarming

•CheaperFertilizers andPesticides

HEA

LTH •Access

Healthfacilities forfemalepopulationincrease by2.7 %

•HealthWorkers haveincreasedfrequency ofvisits tovillage

EDUC

ATIO

N •Dropout rateslower by 28%

•Directlybenefited theschooling ofchildrenespecially ofgirls.

•Safe andeasy traveltoeducationalinstitutions

NO

N F

ARM

AC

TIVITI

ES •The averagemonthly HHincomeincreased by12 % peryear

•Establishing acustomerbase forartisans andcraftsmen,

•Manyvillagers areable toopening upvarious smallshops.

Need for Rural Transport• Provide more opportunity to enabled class (owner of

private vehicles)

• Rural Development Demand for Mobility

• Poor and deprived class are not benefitted much

• Suppressed demand

• “Road only” approach partially address thefundamental transport needs of rural people- need amore integrated approach

What is Accessibility?

Accessibility=Roads + Transport

facility•[Infrastructure] +[Vehicles on Road]

Rural Development•[Improved location

facilities]•Social inclusion

•Access to supplies•Economic freedom

•Access to opportunities

Benefits of Rural Transport?• Provides access to employment and

opportunity• Mitigates Social Exclusion and Poverty

Alleviation• Improves Quality of Life and contributes in

reduction of migration• Reduction of Infrastructure Costs to

Government• Better value for products• More attendance of teachers and health

workers• Women empowerment• Higher enrolments of girls in schools

Elements of Rural TransportRoles of

stakeholders

Vehicle Type,supply and

maintenance

Financing andSustainable

O&M

SubsidyMechanism

Permit andLicense

Operation

SkillDevelopment

Monitoringand feedback

Vehicle services andmechanism/schemeby which they canbe delivered moreeconomically andeffectively

Vehicle Type?Buses?

• Operational Viability is a key concern owing todispersed demand.

• Higher Subsidy needs.

Small Vehicle (8 to 12 seaters)/Mini Bus System?

• More conducive to Rural road geometry and last mileconnectivity

• More suitable owing to adequate load factor vis-à-visdemand.

• Lower operation/subsidies costs per trip• Higher frequency can be planned• Environmentally friendly compared to conventional

buses if bus load factors are not high

Who should operate?Options:

Individual Entrepreneur?•Generates local Employment (direct and indirect)•Less dependence on non-farming activities•Goodwill towards Government efforts can be generated in the localcommunity

•Regular driving/maintenance training needs to be provided.• Identification of candidates however can be cumbersome and requiresstringent monitoring

•Higher chances of default of Bank Loan in the absence of monitoring

Organized Operators/SHG/NGO?•Benefits of Economy of scale .•Better maintained vehicles.•Group of Operators control the Rural Transport Market.•May or may not generate local employment.

Govt. Support?Which kind of support?

• Capital Cost Assistance• Assistance in cost of financing

• Maximum loan term• Financing of maximum cost of vehicle• Interest Subsidy

• Tax Subsidy : Central Govt.(Excise exemption), State Govt. ( VATexemption , MV Taxes)

• Operation Cost Assistance

How to Provide Support?

• Direct Subsidies to Rural Operator through Ministry of RuralDevelopment (MoRD).

• Subsidies to Rural Operators through NGO/Co-operatives/Banks/SelfHelp Groups.

• Subsidies to Rural Operators through Panchayats/Local

Role of Stakeholders

Operators & EntrepreneursOperations & Maintenance and repayment of loan

Gram Panchayat

Route & schedule Planning Monitoring operations &maintenance Periodic report card

Block level authorities

Demand assessment, Level of service planning ,Contracting & monitoring

Inter modal Coordination,Fare fixations & permit

Provisioning commoninfrastructure

District Rural Development Agency (DRDA)| Road Transport Authorities

Planning Monitoring Licensing & Vehicleregistration Issuance of permit

State Government

Strategic Planning Implementation of the Scheme Timely allocation of the funds &Monitoring

Center (MORD)

Formulation of Policy and Scheme, approval, funding and monitoring

RuralTransportScheme

Conductingtraining

programs underSkill Indiaprogram

Direct transfer ofsubsidy under

Pradhan MantriJAN DHAN Yojana

NABARDCGTMSE

FAME POLICY

Free/concessionpasses for girl

students to schoolsunder this scheme ,

Beti Bachao Betipadhao

Financing thetransport vehiclesunder Scheme ofPradhan Mantri

Mudra Yojna

Thank You…