Defining the Gross Cost and Net Cost Options for New Delhi Public Transport

Abstract

Increasing the use of public bus transportation and decreasing the use of private modes is seen as the remedy for New Delhi's congested streets and polluted air. To achieve this, the provision of bus services should be privatized to reduce the financial burden on the government and augment capacity. It will be necessary to regulate the privatized system to improve safety; prevent private operators from concentrating only on the denser routes; improve reliability, punctuality, and other standards of quality; rationalize fares; and improve network design. The article discusses each of the above goals and assesses the applicability in the New Delhi context of the different privatization models used internationally to meet these goals. Two composite strategies are recommended for meeting all of the goals: the gross cost option and the net cost option.