Download - fare policy for transport.pdf
-
8/14/2019 fare policy for transport.pdf
1/36
FARE FIXATION POLICY FORPUBLIC TRANSPORT SYSTEM
Presentation by
.Member Secretary
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 1
NATIONAL CAPITAL REGION PLANNING BOARDWebsite: http://www.ncrpb.nic.inFax: +91 11 2464 2163
December 2009
-
8/14/2019 fare policy for transport.pdf
2/36
poor connectivity to jobs, services,
Lack of access to services leads to ,learning, health care, food supply etc.
mprov ng access a mus u as o eaffordable
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 2
-
8/14/2019 fare policy for transport.pdf
3/36
.
,
consumes less fuel, causes ess po u on,
Less congestion and Less accidents than private motorized
trans ort in terms of assen er-km.
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 3
-
8/14/2019 fare policy for transport.pdf
4/36
Rail vs. Road Transport
Year Mode % share in Total Transport Demand (Approx.)
re g assenger
Road 1950-51 12% 32%1999-2000 60% 80%
Rail 1950-51 88% 68%
1999-2000 40% 20%
ROAD TRANSPORT
freight traffic is likely to be in the range of 5000 to 7000 billiontonne kms by the year 2020 against 1100 bnkms in 2000.
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 4
10,082 billion pkms in 2020.
-
8/14/2019 fare policy for transport.pdf
5/36
Bus vs. Car/ Two wheelers
Vehiclekm
Passkm
Vehiclekm
Passkm
Vehiclekm
Pass km(billion)
Vehiclekm
Pass km(billion)
Bus 18.6% 87.4% 17.1% 86.5% 15.7% 85.4% 14.6% 84.2%
Cars 22.9% 4.2% 23.2% 4.4% 24.6% 5.0% 25.4% 5.5%
TwoWheelers
58.5% 8.4% 59.7% 9.0% 59.6% 9.6% 60.0% 10.3%
Total 118(100.0%)
984(100.0%)
181(100.0%)
1442(100.0%)
280(100.0%)
2074(100.0%)
417(100.0%)
2899(100.0%)
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 5
Source: 'Vision 2020 - Transport', Prepared for the Planning Commission by Mahesh Kapoor, October 2002
-
8/14/2019 fare policy for transport.pdf
6/36
Bus vs. Car/ Two wheelers Contd.
Share of Passenger Km
80
100
m (
% )
e es ma e s are nvehicle km, bus transport isserving 84% of passenger trafficthat justifies its prime importance.
0
20
40
60
h a r e o f P a s s
.
But, the share bus (road basedpublic transport) is founddecreasing over the years (from
Year
Bus Cars Two-Whelers
growth in private vehicles.
Reversing this decreasing trend
transport has become a necessityin solving many transport relatedproblems.
Public transport requires lessinfrastructure, consumes less
fuel, and causes less Pricing Policy is one of the major
tool towards this objectivepollution, congestion andaccidents than privatemotorized transport in terms
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 6
o passenger- m
-
8/14/2019 fare policy for transport.pdf
7/36
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 7
http://vorg.ca/2585-Cars-vs-Bus-vs-Bikes
-
8/14/2019 fare policy for transport.pdf
8/36
transport by addressing the existingissues a ro riatel coupled with need based
investment olic to createinfrastructure; and
a ro riate ricin mechanism tosustain the investment.
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 8
-
8/14/2019 fare policy for transport.pdf
9/36
What is appropriate Pricing Mechanism ?
Affordabilit to serve the urban oor with cross-subsidy element
and comfort level more than price. The cost ofproviding public transport to them need not be
.
Sustainabilit so as to meet the O&M and ca italrecovery with reasonable return through user faresand charges.
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 9
-
8/14/2019 fare policy for transport.pdf
10/36
-
8/14/2019 fare policy for transport.pdf
11/36
Mandate - NUTP, 2006 Those who place a premium on cost are the poorest sections of
society and need to be given affordable prices. The cost forrovidin ublic trans ort for them needs to be subsidised b other
sections of society. However, there is another segment that values time saved and
comfort more than price. This segment is comparatively better offan wou s o pu c ranspor g qua y sys ems areavailable to them. The cost of providing public transport to them
need not be subsidised and can be met from the fare revenues. ,
different levels of services a basic service, with subsidised faresand a premium service, which is of high quality but charges higher
fares and involves no subsidy. In brief, the objective of this policy is to ensure safe, affordable,quick, comfortable, reliable and sustainable access for the growingnumber of city residents to jobs, education, recreation and such
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 11
.
-
8/14/2019 fare policy for transport.pdf
12/36
Mandate Contd. -
The objective is to introduce mechanisms and investmentstowards trip reductions (frequency, Trip length) and modalshifts in favor of buses and NMVs.
JNNURM and City Development ReportsMandatory Reforms:
with the objective that full cost of operation andmaintenance or recurring cost is collected within nextseven years.
security of tenure at affordable prices,
Optional Reforms
Encoura in Public Private artnershi Achievements: Rs 38,956 crores (January 2009) worth of projects were
got approved and Public transport component has received
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 12
the total JNNURM assistance.
-
8/14/2019 fare policy for transport.pdf
13/36
Demand Mana ementOptimise Demand:
-
priorities. Safe pedestrian and bicycle facilities r ce roa usage Parking policy Modal integration
Sustainability:
Economy cost effectiveness and affordability Adequacy feeder services
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 13
-
8/14/2019 fare policy for transport.pdf
14/36
Cost Components Policy Options1. Internal costs- infrastructure construction and maintenance(variable and fixed costs)- transport equipment construction andmaintenance
User charges
public procurement
2. External costs-Congestion - congestion charges
- parking fees- traffic management
-accidents (material, persons, animals) - road safety policy (standards, traffic management,education)- risk-related insurance premiums (= specific user-charges
- emissions/pollution (air, water,soil, climate change, acid rainetc.)
- environmental standards (vehicles, fuels)- traffic management (e.g. speed limits)- cess on fuel- specific urban measures (e.g. parking policy,
-noise nuisancerestricted access)- standards
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 14
- visual intrusion- ecosystem fragmentation - landscape and city planning
-
8/14/2019 fare policy for transport.pdf
15/36
basis of input costs, it does not consider itsaffordability by the commuters etc.Optimal fare: is arrived at after considering
system profitability, customer convenience. 100 % recovery of O&M cost in the short
run 100% recovery of capital cost recovery with
acceptable profit in the long run.
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 15
-
8/14/2019 fare policy for transport.pdf
16/36
O timal Fare
financial sustainability on long term basis optimal fare shall consider the following : be computed on regular basis for effecting changes in customer
fares;
Creation of contingency fund to meet all deficiencies in revenue, ,
parameters etc; passenger friendly fare system;
of inputs but should also cater to wild fluctuations therein, for itslong term sustainability;
should also not be so hi h as to cause hardshi s to low income
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 16
commuters and in turn cause socio-political problems.
-
8/14/2019 fare policy for transport.pdf
17/36
Cash in-Flows Fare Box Collection -
Property Development Advertisement
Charges from increased FSI along thecorridor Remittance by the concessionaire
Congestion taxFuel CellShare of Local taxes/Stamp duties/ External
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 17eve opmen arges
-
8/14/2019 fare policy for transport.pdf
18/36
If fares are set below cost and operating deficits covered from,
will be positive. In case such deficit is not funded , the long-termeffect will be to reduce the quality first and the quantity later
considerable evidence, even in relatively poor countries that thepoor are willing to pay more for a better service than provided at
existing controlled fares with bad service.
the trade-off between the controlled low price and affordability by thepoor actually has to be tackled with adequate care supported byscientific management decisions.
Appropriate cost reduction measures for Public Transport will help toreduce the fare level
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 18
-
8/14/2019 fare policy for transport.pdf
19/36
Fare Revision Sustainability for the system requires periodic revision to
Creates confidence among the operators; transparencyin future fare levels; avoids uncertainty & Generates-
Critical Factors: Increasing level of cost inputs Inflation level Time interval
Subsidy available, if any Affordability Acceptability Simple method & transparent approach
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 19
-
8/14/2019 fare policy for transport.pdf
20/36
Fare Revision Contd.
Revised fare = Existing fare + x + y where, x=a xe oy=a % of CPI or WPI efficiency factor
Examples:1. Toll Rates - NHAI
x=3%, y=40% of the Wholesale Price Index (WPI)Growth Rate
-.Y= 90% of the CPI Growth Rate (10% for efficiency)
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 20
-
8/14/2019 fare policy for transport.pdf
21/36
The Delhi Metro O&M Act, 2002 provides for fixation of
fare by a fare fixation committee.1 st Fare Fixation Committee was constituted in Dec 2003to recommend fares for the sections to be opened by Dec2004.
2nd Fare Fixation Committee was constituted in Oct 2005o recommen ares or e sec ons o e opene y ec
2005. At the request of DMRC, the Government has constituted
June 2009.
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 21
-
8/14/2019 fare policy for transport.pdf
22/36
BASE 1982=100
YEAR March
2004 204
2005 525BASE 2001=100
2006 119
2007 127
2008 137
2009 148
** Linking Factor for 1982 to 2001 prices is 4.63.
BASE 1982=100
2006 5512007 588
2008 634
2009 685
22
Source : Labour Bureau Government of India
-
8/14/2019 fare policy for transport.pdf
23/36
April 2005 525
Escalation Apr '05 to Mar '09 30.48%Extrapolation till Mar 2010 6.88%
Total escalation to arrive at March 37.35%
Average yearly escalation 7.47%
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 23
-
8/14/2019 fare policy for transport.pdf
24/36
A com arisonExisting Proposed
DistanceZones
MeanDistance
Fare (Rupees)ProposedDistance
zonesMean
DistanceFare
(Rupees)(KMs) (KMs) (KMs) (KMs)
0-2 1 6 0-2 1.00 8
2-4 3 8 2-4 3.00 10
4-6 5 9 4-6 5.00 12
6-9 7.5 11 6-9 7.50 15
9-12 10.5 12 9-12 10.50 16
12-15 13.5 13 12-15 13.50 18
- . - .
18-21 19.5 15 18-21 19.50 21
21-24 22.5 16 21-24 22.50 22
24-27 25.5 17 24.27 25.50 2327-30 28.5 18 27-31 29.00 25
30-33 31.5 19 31-35 33.00 27
33-36 34.5 20 35-39 37.00 29
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 24
- . - .
>39 39 22 >44 44.00 32
-
8/14/2019 fare policy for transport.pdf
25/36
.
the year 2010-11 when the Phase-II isfully operational. Maximum distance traveled shall go up to
44 KMs from 39 KMs earlier.KMs from 11.5 KMs earlier.
Increase in the ridership is estimated @per annum.
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 25
-
8/14/2019 fare policy for transport.pdf
26/36
-
8/14/2019 fare policy for transport.pdf
27/36
O &M Ex ensesStaff Costs
.o Break up: 27 Subordinate staff, 17 Supervisory staff and
I Executiveo Salar as er revised scales & erks.o Staff Cost calculated for 164.335 KMs of Metro network
excluding the Airport Line.
a n enance cos so U/G: Rs 3.70 crores/KMo Elevated: Rs 2.78 crores/KM (75% of U/G maintenance
o This is based on Phase-II DPR estimates whichassumed a uniform figure of Rs. 3.70 crore per km for both underground as well as elevated sections.
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 27
-
8/14/2019 fare policy for transport.pdf
28/36
Contd.
Energy costso 22.39 crore Units consumed for 75.55 KMs in 2008-09.o x rapo a ng e a ove or . m s. un g ves e
estimated energy cost for 2010-11.
the Loan Agreements.
.cost of project for Phase- I & II (less cost of land)
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 28
-
8/14/2019 fare policy for transport.pdf
29/36
Maintenance Energy Total
Expenses (Rs In crore)
2010 - 2011 301.99 487.48 197.42 986.892011 - 2012 324.55 523.90 212.17 1060.61
- . . . .
2013 - 2014 374.85 605.10 245.06 1225.00
2014 - 2015 402.85 650.30 263.36 1316.52- . . . .
2016 - 2017 465.29 751.09 304.18 1520.57
2017 - 2018 500.05 807.20 326.91 1634.16
2018 - 2019 537.41 867.51 351.33 1756.242019 - 2020 577.55 932.32 377.57 1887.44
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 29
-
8/14/2019 fare policy for transport.pdf
30/36
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 30
-
8/14/2019 fare policy for transport.pdf
31/36
rpor xpress e ro ne
The Airport Express Metro Line is being developedon a unique PPP model.The cost of civil structures is being borne by DMRC.The cost of systems including Rolling Stock is beingborne b the concessionaire.The concessionaire will operate the system for a 30year period after which the same will revert back to
DMRC.
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 31
-
8/14/2019 fare policy for transport.pdf
32/36
WPI in 2003-04 175.90
WPI in 2007-08 215.90
Escalation 2003-04 to 2007-08 23%
Average yearly escalation after deduction of 5.12% or e c ency
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 32
-
8/14/2019 fare policy for transport.pdf
33/36
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 33
-
8/14/2019 fare policy for transport.pdf
34/36
NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD NATIONAL CAPTIAL REGION PLANNING BOARD 34
-
8/14/2019 fare policy for transport.pdf
35/36
Fare Structure of DTCPast Present
OrdinaryService
Fare OrdinaryService
Fare
Upto 4 Kms Rs.3/- Upto 4 Kms Rs.5/-
4-8 Kms Rs.5/- 4-10 Kms Rs.10/-
8-12 km Rs.7/- 10 km onwards Rs.15/-
12 km onwards Rs.10/- - -ow oor
Busesow oor
Buses
Upto 8 Kms Rs.10/- Upto 4 Kms Rs.10/-
8-16 Kms Rs.15/- 4-8 Kms Rs.15/-
16-24 km Rs.20/- 8-12 km Rs.20/-
- -
35
.kms
.
-
8/14/2019 fare policy for transport.pdf
36/36
Thank You