Bengaluru needs BUS BHAGYA! Allocate 1300 crores in 2015-16 budget to make BMTC affordable, reliable and equitable!


Bengaluru needs BUS BHAGYA! Allocate 1300 crores in 2015-16 budget to make BMTC affordable, reliable and equitable!
The Issue
1. Bus fares: Bengaluru’s public transport service provider, BMTC’s bus fares have increased 5 times in 3 years and they have increased by 70-80%. Bus fares in Bangalore and Karnataka are the highest in the country. The reduction in ticket prices by Re.1 in Jan 2015 is highly inadequate. Most people are not able to afford the BMTC ticket prices and passes. This is significantly affecting their ability to meet their basic needs of a decent living. Many cities are experimenting with free public transport. BMTC should at least provide services which are affordable for all.
Recommendations: BMTC bus fares are today linked to diesel prices and staff salary increases. We suggest that, instead, bus fares should be linked to minimum wages declared by the government so that the bus fares are affordable to most people.
PROPOSED BUS BHAGYA FARE STRUCTURE
- Rs.5 for 10 km, Rs.10 for up to 20 km, Rs.15 for > 20 km (roughly 50 ps per km)
- Rs.25 for daily pass, Rs.250 for monthly pass, Rs.100 for senior citizens' monthly pass
- Free bus pass for workers earning less than the minimum wage
Note: Rs.250 is roughly 5% of the minimum wage fixed by the government. We have used that as the benchmark for monthly bus pass.
2. Adequacy of buses and service quality: There are not enough buses or they are infrequent. So, during peak hours, buses are overloaded. Therefore, people have to wait for long to get a bus. When they do get one, they travel in great discomfort. Buses do not adequately serve many areas in the interior or the outskirts of the city, if at all. Unregulated and unsafe private services exploit this inadequacy and many are forced to use these services. Others, who can afford their own vehicles, travel in them adding to traffic congestion and heightened pollution in the city. Also, many of the BMTC buses in service are too old and need to be phased out.
Recommendations: Given the dire mobility crisis and traffic congestion in the city, improving public transport services has become an urgent need. There is a need to significantly increase the frequency of existing services and coverage in newer, developing, under-served and interior areas and replace old buses to serve a greater number of people with comfort. BMTC needs to add at least 2000 more buses to its fleet to replace the old buses and serve the unmet mobility demand in the city.
In the past, when buying new buses, BMTC has been buying Volvo A/C buses along with regular non-AC buses. Volvo A/C buses serve only a small section of society and are a drain on public resources. Therefore, when buying new buses, we suggest that BMTC buy regular non-AC low floor buses for main roads and mini-buses to serve interior areas and narrower roads.
3. Working conditions of staff: BMTC conductors and drivers are working under very difficult conditions. Revenue targets and outdated bus schedules are making their lives miserable. BMTC has not paid PF arrears to its employees or the insurance premium for employees. Many workers are not regularized and are working as contract labor even after many years.
Recommendations: BMTC should operate as a fair employer and provide fair wages and fair working conditions to its staff.
4. Provision for shelters at bus stops: There are 8000 bus stops in the city, out of which only 1500 have shelters. This is causing great inconvenience to public. The bus stops also don’t have any information about the bus routes, destinations or the schedules. Often not even the name of the bus stop is included or is hidden among the advertisements.
Recommendations: All the bus stops should have shelters with sufficient lighting, protection from weather and information panels/boards with name of the bus stop, bus routes, destinations, schedules and information about when the next bus will arrive.
BMTC is a Public Service
In the current model of BMTC as a profit making corporation funding its capital and operational expenses from its own revenues, BMTC is prioritizing revenues and profits at the cost of its basic purpose and duties towards commuters and workers. To be able to meet the above needs, BMTC needs additional funds. As it cannot raise these funds from its revenues, we request the State government to provide additional financial support to BMTC and BBMP in the coming budget to make BMTC a fair employer and an affordable service, serving all areas and people and traveling by bus a comfortable experience for commuters.
Financial Support for BMTC and BBMP in 2015-16 State Budget for improved public transport
1. BMTC should be provided at least Rs.1000 crores financial support to implement the bus fare structure proposed above, for buying new buses and for providing fair wages and working conditions for it workers
2. BBMP should be given Rs.300 crores for providing shelters at all bus stops with lighting, protection from weather and information panels
Where will the funds come from?
The government has provided Rs.10000 crore as subsidy to Bangalore Metro. Government has also given concessions worth hundreds of crores to Toyota and Volvo companies. The concessions given to developers of SEZs around Bangalore amount to more than Rs.5000 crores. So, availability of funds does not seem to be an issue for the government.
Various models for providing financial support to BMTC
1. BMTC, in 2013-14 alone, paid Rs.185 crores in diesel and vehicle tax alone to the state government. Government can refund these and other taxes paid to it by the BMTC. Andhra Government did this in 2013-14
2. Subsidies incurred by BMTC for student passes, disability passes and any other such measures can be refunded by State government. Kerala Govt recently announced free passes for all students
3. State government can pay the salaries of BMTC staff. Tamil Nadu government does this for Chennai bus service. The minimum fare in Chennai is Rs.3 as compared to Rs.5 in Bengaluru.
4. State Govt can provide direct financial support to BMTC. In Mumbai, the Municipal Corporation provided Rs.150 crores in 2014-15 budget to BEST, the Mumbai public bus transport company to roll back fare hikes
5. BBMP can collect congestion charges and parking fees from private vehicles and provide these funds to BMTC to improve public transport. Many European and American cities already follow this practice
Auditing BMTC
There are widespread allegations of extreme corruption and misuse of funds within BMTC and this is a matter of serious concern, especially when requesting that public money be given to BMTC. We recommend that a thorough financial, administrative and operational audit of BMTC be undertaken and measures be taken to address all issues identified and bring in more transparency in BMTC’s functioning to improve the public confidence that BMTC’s funds are being used to serve the public purpose.

The Issue
1. Bus fares: Bengaluru’s public transport service provider, BMTC’s bus fares have increased 5 times in 3 years and they have increased by 70-80%. Bus fares in Bangalore and Karnataka are the highest in the country. The reduction in ticket prices by Re.1 in Jan 2015 is highly inadequate. Most people are not able to afford the BMTC ticket prices and passes. This is significantly affecting their ability to meet their basic needs of a decent living. Many cities are experimenting with free public transport. BMTC should at least provide services which are affordable for all.
Recommendations: BMTC bus fares are today linked to diesel prices and staff salary increases. We suggest that, instead, bus fares should be linked to minimum wages declared by the government so that the bus fares are affordable to most people.
PROPOSED BUS BHAGYA FARE STRUCTURE
- Rs.5 for 10 km, Rs.10 for up to 20 km, Rs.15 for > 20 km (roughly 50 ps per km)
- Rs.25 for daily pass, Rs.250 for monthly pass, Rs.100 for senior citizens' monthly pass
- Free bus pass for workers earning less than the minimum wage
Note: Rs.250 is roughly 5% of the minimum wage fixed by the government. We have used that as the benchmark for monthly bus pass.
2. Adequacy of buses and service quality: There are not enough buses or they are infrequent. So, during peak hours, buses are overloaded. Therefore, people have to wait for long to get a bus. When they do get one, they travel in great discomfort. Buses do not adequately serve many areas in the interior or the outskirts of the city, if at all. Unregulated and unsafe private services exploit this inadequacy and many are forced to use these services. Others, who can afford their own vehicles, travel in them adding to traffic congestion and heightened pollution in the city. Also, many of the BMTC buses in service are too old and need to be phased out.
Recommendations: Given the dire mobility crisis and traffic congestion in the city, improving public transport services has become an urgent need. There is a need to significantly increase the frequency of existing services and coverage in newer, developing, under-served and interior areas and replace old buses to serve a greater number of people with comfort. BMTC needs to add at least 2000 more buses to its fleet to replace the old buses and serve the unmet mobility demand in the city.
In the past, when buying new buses, BMTC has been buying Volvo A/C buses along with regular non-AC buses. Volvo A/C buses serve only a small section of society and are a drain on public resources. Therefore, when buying new buses, we suggest that BMTC buy regular non-AC low floor buses for main roads and mini-buses to serve interior areas and narrower roads.
3. Working conditions of staff: BMTC conductors and drivers are working under very difficult conditions. Revenue targets and outdated bus schedules are making their lives miserable. BMTC has not paid PF arrears to its employees or the insurance premium for employees. Many workers are not regularized and are working as contract labor even after many years.
Recommendations: BMTC should operate as a fair employer and provide fair wages and fair working conditions to its staff.
4. Provision for shelters at bus stops: There are 8000 bus stops in the city, out of which only 1500 have shelters. This is causing great inconvenience to public. The bus stops also don’t have any information about the bus routes, destinations or the schedules. Often not even the name of the bus stop is included or is hidden among the advertisements.
Recommendations: All the bus stops should have shelters with sufficient lighting, protection from weather and information panels/boards with name of the bus stop, bus routes, destinations, schedules and information about when the next bus will arrive.
BMTC is a Public Service
In the current model of BMTC as a profit making corporation funding its capital and operational expenses from its own revenues, BMTC is prioritizing revenues and profits at the cost of its basic purpose and duties towards commuters and workers. To be able to meet the above needs, BMTC needs additional funds. As it cannot raise these funds from its revenues, we request the State government to provide additional financial support to BMTC and BBMP in the coming budget to make BMTC a fair employer and an affordable service, serving all areas and people and traveling by bus a comfortable experience for commuters.
Financial Support for BMTC and BBMP in 2015-16 State Budget for improved public transport
1. BMTC should be provided at least Rs.1000 crores financial support to implement the bus fare structure proposed above, for buying new buses and for providing fair wages and working conditions for it workers
2. BBMP should be given Rs.300 crores for providing shelters at all bus stops with lighting, protection from weather and information panels
Where will the funds come from?
The government has provided Rs.10000 crore as subsidy to Bangalore Metro. Government has also given concessions worth hundreds of crores to Toyota and Volvo companies. The concessions given to developers of SEZs around Bangalore amount to more than Rs.5000 crores. So, availability of funds does not seem to be an issue for the government.
Various models for providing financial support to BMTC
1. BMTC, in 2013-14 alone, paid Rs.185 crores in diesel and vehicle tax alone to the state government. Government can refund these and other taxes paid to it by the BMTC. Andhra Government did this in 2013-14
2. Subsidies incurred by BMTC for student passes, disability passes and any other such measures can be refunded by State government. Kerala Govt recently announced free passes for all students
3. State government can pay the salaries of BMTC staff. Tamil Nadu government does this for Chennai bus service. The minimum fare in Chennai is Rs.3 as compared to Rs.5 in Bengaluru.
4. State Govt can provide direct financial support to BMTC. In Mumbai, the Municipal Corporation provided Rs.150 crores in 2014-15 budget to BEST, the Mumbai public bus transport company to roll back fare hikes
5. BBMP can collect congestion charges and parking fees from private vehicles and provide these funds to BMTC to improve public transport. Many European and American cities already follow this practice
Auditing BMTC
There are widespread allegations of extreme corruption and misuse of funds within BMTC and this is a matter of serious concern, especially when requesting that public money be given to BMTC. We recommend that a thorough financial, administrative and operational audit of BMTC be undertaken and measures be taken to address all issues identified and bring in more transparency in BMTC’s functioning to improve the public confidence that BMTC’s funds are being used to serve the public purpose.

Petition Closed
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The Decision Makers
Petition created on 19 January 2015