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PPP in
Indian Public Bus Transport
Why and How
Aadinath Bulk Private Limited
Why
Why?
Cost
Effective
Leveraging
Private Sector’s
Expertise in
Higher Segment
Hassle-free
Service
Reduction in
Management
Expenditure
PPP in
City Transport
has been for years…
2. NCC – Net Cost Contract
1. GCC – Gross Cost Contract
3. Hybrid – Viable Gap/Incentive Based
PPP- Operational Models
Wide categorization in three types:
Gross Cost Contract
Private operator undertakes the operation
and maintenance at agreed price. This price
is generally fixed KM based rate.
GCC- Planning
Deciding on
length of contact
Operational
Planning
Traffic
Revision/Fixing
Authority/Assigned Agency
Investment Planning
/Funding
Setting Performance
Standard
Passenger Demand
Assessment
Authority
GCC- Implementation
Various Inspections
Marketing/
Branding
Fleet
Requirement/Assement
Authority/Assigned Agency
Route
Assessment
Fleet Procurement
Passenger Demand
Assessment
Operator Authority
GCC- Operations
Revenue
Collection
Ensuring Quality
Service
Service Quality
Maintenance
Authority/Assigned Agency
Operation of Buses
Operation of
Control Room
Operator
Authority
Maintenance
GCC- Advantages
So far, it has been proven as the most
sustainable model
High ridership -> better
revenue
Financial
Viability
Good number of
operators
GCC- Disadvantages
Authority need to monitor daily operations of the operator.
However, automatation can be done with procuring
technology.
Reduction in compromising quality to earn more
profit is vital
GCC Implemented
Ahmedabad City +
BRTS
Surat City + BRTS Pune
DelhiRajkotIndore BRTS
Ludhiana Jaipur
Net Cost Contract
Private operator undertakes operation,
maintenance and revenue collection
activities.
It retains fare box revenue and bears the
revenue risk.
NCC- Planning
Deciding on
length of contact
Operational
Planning
Traffic
Revision/Fixing
Authority/Assigned Agency
Investment Planning
/Funding
Setting Performance
Standard
Passenger Demand
Assessment
Authority
NCC- Implementation
Various Inspections
Marketing/
Branding
Fleet
Requirement/Assement
Authority/Assigned Agency
Route
Assessment
Fleet Procurement
Passenger Demand
Assessment
Operator Authority
NCC - Operations
Service Quality Maintenance
Authority/Assigned Agency
Operation of Buses
Operation of Control Room
Operator
Maintenance Revenue Collection Ensuring Quality
Service
NCC - Advantages
Poses Less revenue risk on authority.
Less amount of efforts is required from
authority to increase ridership.
NCC - Disadvantages
Number of passengers
transported, operators may
compromise on safety
Limited operators shows interest
in bidding
Withdraws from service in between
NCC Implemented
Gandhinagar Indore- City
Bhuvneshwar Jalandhar
Current Trend Citywise
Refernce Link: http://shaktifoundation.in/wp-content/uploads/2014/02/Final-Report-
PPP-Models-for-Sustainable-Urban-Transport-Systems.pdf
Refernce Link:
https://timesofindia.indiatimes.com/city/delhi/how-surat-got-people-to-
ditch-autorickshaw-rides-opt-for-buses/articleshow/61611309.cms
Surat Example
https://timesofindia.indiatimes.com/city/delhi/how-surat-got-people-to-ditch-autorickshaw-
rides-opt-for-buses/articleshow/61611309.cms
Hybrid GCC
The authority supplements fixed payment
with bonus payments linked to efficient
performance.
Operators will be awarded for meeting
performance parameters
Recently Surat has put this model in place
for city based operations
marketing.
London Model has been considered as an
ideal for many countries.
London Bus Model. Minimum performance
standard is various inspections. On time
performance , customer satisfation,
robust and actionable data
Technology
? Automatic Notification
? Enhanced radio communications
? Real time Counting of passengers
? Location Tracker GPRS
? Smart screen display for fixed
announcements
TENDER Process
Tender
Quality of
service
excelled
Model Decision
Tender
Number of
KMS/years
TENDER Process
Thank
you
Visit us at https://www.aadinathbulk.com

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