Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
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Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Ponty, buses and PPPs-Sunita Narain    </title>
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-The Business Standard

Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern infra 

Liquor baron Ponty Chadha and his brother &ndash; both died recently in a fratricide &ndash; had..."/>
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Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern infra 

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                            <div align="justify">-The Business Standard<br /><br /><em>Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern infra <br /></em><br />Liquor baron Ponty Chadha and his brother &ndash; both died recently in a fratricide &ndash; had another business that is not widely known. They had acquired the concession to run public transport buses in Delhi &mdash; three clusters with a combined fleet of 600-odd vehicles.<br /><br />Even before they died, this private foray into public buses was turning sour. Given that public-private partnerships (PPPs) have become the country&rsquo;s favourite pastime, it is important to ask if we really understand how to create and sustain essential public infrastructure for the relatively poor and the middle class. In other words, how do we work with private enterprise for facilities in which costs will have to be kept affordable &mdash; often through public subsidy or innovative fiscal management?<br /><br />We know that the city of Delhi and all others desperately need a revamped, modern public transport system. Without a viable and convenient transport system, the growth of private vehicles will choke the city&rsquo;s roads and poison its air. The question is: what will be the shape and organisation of this system?<br /><br />Urban bus transport in India is largely publicly managed. Be it Mumbai, Bangalore, Kolkata, Hyderabad or Delhi, city corporations run this key commuter service. Some do a better job than others, but the accounts of all agencies show they are bleeding because of high costs of operations and low price of tickets. The bus fare has to be kept lower than the cost of running a two-wheeler, which is roughly Rs 1-2 per km in India. The price of a bus ticket can only increase if there are adequate barriers to its substitutes. For instance, high parking rates for private vehicles and a steep penalty for unauthorised parking encourage people to switch to public transport.<br /><br />Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern bus infrastructure. As a result, the buses become overcrowded and service becomes poor and unreliable. The only competitor is the informal bus service, like Delhi&rsquo;s infamous blueline operators, who got the tag of &ldquo;killer bus line&rdquo;. These buses operate on a shoestring budget, and their service is poor. People use them not because of convenience; they do so out of compulsion. But economics works because of low overheads and single owners &mdash; like the bus service in which the horrific rape took place in Delhi. This poorly functioning PPP model thrives.<br /><br />The other option is to transform the disorganised private buses into a corporatised model, in which a single entity has the contract for running buses and service conditions are clearly laid down and paid for. Delhi did this a few years ago. It divided the city into clusters and took a decision that each area would have only two bus operators: the Delhi Transport Corporation and a private player. This would create competition and build a scalable model for this service. It also decided to bid for this service on a gross cost basis &mdash; it would estimate the cost of capital and operations, and the contractor would have to meet the laid-down service conditions.<br /><br />The organised bus service has to pay for capital &mdash; the cost of buses. Delhi invested in low-floor buses for commuters&rsquo; convenience. The equated monthly installment of a swanky bus is Rs 24 per km and that of a cheaper kind is Rs 12 per km &mdash; this is computed assuming that the bus travels some 200 km a day. Then bus services have to pay for the cost of fuel, staff, maintenance, insurance and tax. Bangalore runs the most efficient operations, which cost Rs 30 a km, while the service in Mumbai costs close to Rs 60 per km, without accounting for the cost of capital.<br /><br />All in all, the cost of buying and running an on-time and modern bus service in Delhi comes to Rs 50-60 per km, of which the state pays a gap financing of Rs 10 per km. With the best efforts to improve collection of ticket sales, revenue is roughly Rs 37 per km. The bottom line is that in any revenue model there will be a deficit. The costs &ndash; particularly if the capital is added &ndash; will be higher than what can be recovered, especially in a market predetermined by cheap private transport options. The service will have to be backed by public subsidy or some form of innovative financing.<br /><br />This was the model that Ponty Chadha&rsquo;s company bid for. But all was not well in the operations. The fact is that private operators have little incentive to meet the tough service conditions. They would prefer to cut corners. Disputes, renegotiations and fallouts are in the nature of such agreements. In the case of Ponty&rsquo;s buses, the Delhi government had already issued a penalty notice against for non-compliance with its agreement. Where does the city go from here?<br /><br />We better find answers because there is no alternative to public transport. Car exhaust is already taking a toll on our lungs.<br /><br /><em>sunita@cseindia.org </em><br /></div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/sunita-narain-ponty-busesppps/496563/" class="re" target="_blank">The Business Standard, 24 December, 2012, http://www.business-standard.com/india/news/sunita-narain-ponty-busesppps/496563/</a><div class="clear"></div>
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    <h1 class="cat-box-title">Ponty, buses and PPPs-Sunita Narain</h1>
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		 Published on</span><span class="text-date"> Dec 24, 2012</span>
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                            <div align="justify">-The Business Standard<br /><br /><em>Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern infra <br /></em><br />Liquor baron Ponty Chadha and his brother &ndash; both died recently in a fratricide &ndash; had another business that is not widely known. They had acquired the concession to run public transport buses in Delhi &mdash; three clusters with a combined fleet of 600-odd vehicles.<br /><br />Even before they died, this private foray into public buses was turning sour. Given that public-private partnerships (PPPs) have become the country&rsquo;s favourite pastime, it is important to ask if we really understand how to create and sustain essential public infrastructure for the relatively poor and the middle class. In other words, how do we work with private enterprise for facilities in which costs will have to be kept affordable &mdash; often through public subsidy or innovative fiscal management?<br /><br />We know that the city of Delhi and all others desperately need a revamped, modern public transport system. Without a viable and convenient transport system, the growth of private vehicles will choke the city&rsquo;s roads and poison its air. The question is: what will be the shape and organisation of this system?<br /><br />Urban bus transport in India is largely publicly managed. Be it Mumbai, Bangalore, Kolkata, Hyderabad or Delhi, city corporations run this key commuter service. Some do a better job than others, but the accounts of all agencies show they are bleeding because of high costs of operations and low price of tickets. The bus fare has to be kept lower than the cost of running a two-wheeler, which is roughly Rs 1-2 per km in India. The price of a bus ticket can only increase if there are adequate barriers to its substitutes. For instance, high parking rates for private vehicles and a steep penalty for unauthorised parking encourage people to switch to public transport.<br /><br />Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern bus infrastructure. As a result, the buses become overcrowded and service becomes poor and unreliable. The only competitor is the informal bus service, like Delhi&rsquo;s infamous blueline operators, who got the tag of &ldquo;killer bus line&rdquo;. These buses operate on a shoestring budget, and their service is poor. People use them not because of convenience; they do so out of compulsion. But economics works because of low overheads and single owners &mdash; like the bus service in which the horrific rape took place in Delhi. This poorly functioning PPP model thrives.<br /><br />The other option is to transform the disorganised private buses into a corporatised model, in which a single entity has the contract for running buses and service conditions are clearly laid down and paid for. Delhi did this a few years ago. It divided the city into clusters and took a decision that each area would have only two bus operators: the Delhi Transport Corporation and a private player. This would create competition and build a scalable model for this service. It also decided to bid for this service on a gross cost basis &mdash; it would estimate the cost of capital and operations, and the contractor would have to meet the laid-down service conditions.<br /><br />The organised bus service has to pay for capital &mdash; the cost of buses. Delhi invested in low-floor buses for commuters&rsquo; convenience. The equated monthly installment of a swanky bus is Rs 24 per km and that of a cheaper kind is Rs 12 per km &mdash; this is computed assuming that the bus travels some 200 km a day. Then bus services have to pay for the cost of fuel, staff, maintenance, insurance and tax. Bangalore runs the most efficient operations, which cost Rs 30 a km, while the service in Mumbai costs close to Rs 60 per km, without accounting for the cost of capital.<br /><br />All in all, the cost of buying and running an on-time and modern bus service in Delhi comes to Rs 50-60 per km, of which the state pays a gap financing of Rs 10 per km. With the best efforts to improve collection of ticket sales, revenue is roughly Rs 37 per km. The bottom line is that in any revenue model there will be a deficit. The costs &ndash; particularly if the capital is added &ndash; will be higher than what can be recovered, especially in a market predetermined by cheap private transport options. The service will have to be backed by public subsidy or some form of innovative financing.<br /><br />This was the model that Ponty Chadha&rsquo;s company bid for. But all was not well in the operations. The fact is that private operators have little incentive to meet the tough service conditions. They would prefer to cut corners. Disputes, renegotiations and fallouts are in the nature of such agreements. In the case of Ponty&rsquo;s buses, the Delhi government had already issued a penalty notice against for non-compliance with its agreement. Where does the city go from here?<br /><br />We better find answers because there is no alternative to public transport. Car exhaust is already taking a toll on our lungs.<br /><br /><em>sunita@cseindia.org </em><br /></div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/sunita-narain-ponty-busesppps/496563/" class="re" target="_blank">The Business Standard, 24 December, 2012, http://www.business-standard.com/india/news/sunita-narain-ponty-busesppps/496563/</a><div class="clear"></div>
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-The Business Standard

Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern infra 

Liquor baron Ponty Chadha and his brother &ndash; both died recently in a fratricide &ndash; had..." />
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    <h1 class="cat-box-title">Ponty, buses and PPPs-Sunita Narain</h1>
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                            <div align="justify">-The Business Standard<br /><br /><em>Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern infra <br /></em><br />Liquor baron Ponty Chadha and his brother &ndash; both died recently in a fratricide &ndash; had another business that is not widely known. They had acquired the concession to run public transport buses in Delhi &mdash; three clusters with a combined fleet of 600-odd vehicles.<br /><br />Even before they died, this private foray into public buses was turning sour. Given that public-private partnerships (PPPs) have become the country&rsquo;s favourite pastime, it is important to ask if we really understand how to create and sustain essential public infrastructure for the relatively poor and the middle class. In other words, how do we work with private enterprise for facilities in which costs will have to be kept affordable &mdash; often through public subsidy or innovative fiscal management?<br /><br />We know that the city of Delhi and all others desperately need a revamped, modern public transport system. Without a viable and convenient transport system, the growth of private vehicles will choke the city&rsquo;s roads and poison its air. The question is: what will be the shape and organisation of this system?<br /><br />Urban bus transport in India is largely publicly managed. Be it Mumbai, Bangalore, Kolkata, Hyderabad or Delhi, city corporations run this key commuter service. Some do a better job than others, but the accounts of all agencies show they are bleeding because of high costs of operations and low price of tickets. The bus fare has to be kept lower than the cost of running a two-wheeler, which is roughly Rs 1-2 per km in India. The price of a bus ticket can only increase if there are adequate barriers to its substitutes. For instance, high parking rates for private vehicles and a steep penalty for unauthorised parking encourage people to switch to public transport.<br /><br />Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern bus infrastructure. As a result, the buses become overcrowded and service becomes poor and unreliable. The only competitor is the informal bus service, like Delhi&rsquo;s infamous blueline operators, who got the tag of &ldquo;killer bus line&rdquo;. These buses operate on a shoestring budget, and their service is poor. People use them not because of convenience; they do so out of compulsion. But economics works because of low overheads and single owners &mdash; like the bus service in which the horrific rape took place in Delhi. This poorly functioning PPP model thrives.<br /><br />The other option is to transform the disorganised private buses into a corporatised model, in which a single entity has the contract for running buses and service conditions are clearly laid down and paid for. Delhi did this a few years ago. It divided the city into clusters and took a decision that each area would have only two bus operators: the Delhi Transport Corporation and a private player. This would create competition and build a scalable model for this service. It also decided to bid for this service on a gross cost basis &mdash; it would estimate the cost of capital and operations, and the contractor would have to meet the laid-down service conditions.<br /><br />The organised bus service has to pay for capital &mdash; the cost of buses. Delhi invested in low-floor buses for commuters&rsquo; convenience. The equated monthly installment of a swanky bus is Rs 24 per km and that of a cheaper kind is Rs 12 per km &mdash; this is computed assuming that the bus travels some 200 km a day. Then bus services have to pay for the cost of fuel, staff, maintenance, insurance and tax. Bangalore runs the most efficient operations, which cost Rs 30 a km, while the service in Mumbai costs close to Rs 60 per km, without accounting for the cost of capital.<br /><br />All in all, the cost of buying and running an on-time and modern bus service in Delhi comes to Rs 50-60 per km, of which the state pays a gap financing of Rs 10 per km. With the best efforts to improve collection of ticket sales, revenue is roughly Rs 37 per km. The bottom line is that in any revenue model there will be a deficit. The costs &ndash; particularly if the capital is added &ndash; will be higher than what can be recovered, especially in a market predetermined by cheap private transport options. The service will have to be backed by public subsidy or some form of innovative financing.<br /><br />This was the model that Ponty Chadha&rsquo;s company bid for. But all was not well in the operations. The fact is that private operators have little incentive to meet the tough service conditions. They would prefer to cut corners. Disputes, renegotiations and fallouts are in the nature of such agreements. In the case of Ponty&rsquo;s buses, the Delhi government had already issued a penalty notice against for non-compliance with its agreement. Where does the city go from here?<br /><br />We better find answers because there is no alternative to public transport. Car exhaust is already taking a toll on our lungs.<br /><br /><em>sunita@cseindia.org </em><br /></div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/sunita-narain-ponty-busesppps/496563/" class="re" target="_blank">The Business Standard, 24 December, 2012, http://www.business-standard.com/india/news/sunita-narain-ponty-busesppps/496563/</a><div class="clear"></div>
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Ponty, buses and PPPs-Sunita Narain

Published on Dec 24, 2012   Modified on Dec 24, 2012

-The Business Standard Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern infra Liquor baron Ponty Chadha and his brother – both died recently in a fratricide – had another business that is not widely known. They had acquired the concession to run public transport buses in Delhi — three clusters with a combined fleet of 600-odd vehicles. Even before they died, this private foray into public buses was turning sour. Given that public-private partnerships (PPPs) have become the country’s favourite pastime, it is important to ask if we really understand how to create and sustain essential public infrastructure for the relatively poor and the middle class. In other words, how do we work with private enterprise for facilities in which costs will have to be kept affordable — often through public subsidy or innovative fiscal management? We know that the city of Delhi and all others desperately need a revamped, modern public transport system. Without a viable and convenient transport system, the growth of private vehicles will choke the city’s roads and poison its air. The question is: what will be the shape and organisation of this system? Urban bus transport in India is largely publicly managed. Be it Mumbai, Bangalore, Kolkata, Hyderabad or Delhi, city corporations run this key commuter service. Some do a better job than others, but the accounts of all agencies show they are bleeding because of high costs of operations and low price of tickets. The bus fare has to be kept lower than the cost of running a two-wheeler, which is roughly Rs 1-2 per km in India. The price of a bus ticket can only increase if there are adequate barriers to its substitutes. For instance, high parking rates for private vehicles and a steep penalty for unauthorised parking encourage people to switch to public transport. Since cities have little money to cover operational costs of running buses, they do not invest in new buses or modern bus infrastructure. As a result, the buses become overcrowded and service becomes poor and unreliable. The only competitor is the informal bus service, like Delhi’s infamous blueline operators, who got the tag of “killer bus line”. These buses operate on a shoestring budget, and their service is poor. People use them not because of convenience; they do so out of compulsion. But economics works because of low overheads and single owners — like the bus service in which the horrific rape took place in Delhi. This poorly functioning PPP model thrives. The other option is to transform the disorganised private buses into a corporatised model, in which a single entity has the contract for running buses and service conditions are clearly laid down and paid for. Delhi did this a few years ago. It divided the city into clusters and took a decision that each area would have only two bus operators: the Delhi Transport Corporation and a private player. This would create competition and build a scalable model for this service. It also decided to bid for this service on a gross cost basis — it would estimate the cost of capital and operations, and the contractor would have to meet the laid-down service conditions. The organised bus service has to pay for capital — the cost of buses. Delhi invested in low-floor buses for commuters’ convenience. The equated monthly installment of a swanky bus is Rs 24 per km and that of a cheaper kind is Rs 12 per km — this is computed assuming that the bus travels some 200 km a day. Then bus services have to pay for the cost of fuel, staff, maintenance, insurance and tax. Bangalore runs the most efficient operations, which cost Rs 30 a km, while the service in Mumbai costs close to Rs 60 per km, without accounting for the cost of capital. All in all, the cost of buying and running an on-time and modern bus service in Delhi comes to Rs 50-60 per km, of which the state pays a gap financing of Rs 10 per km. With the best efforts to improve collection of ticket sales, revenue is roughly Rs 37 per km. The bottom line is that in any revenue model there will be a deficit. The costs – particularly if the capital is added – will be higher than what can be recovered, especially in a market predetermined by cheap private transport options. The service will have to be backed by public subsidy or some form of innovative financing. This was the model that Ponty Chadha’s company bid for. But all was not well in the operations. The fact is that private operators have little incentive to meet the tough service conditions. They would prefer to cut corners. Disputes, renegotiations and fallouts are in the nature of such agreements. In the case of Ponty’s buses, the Delhi government had already issued a penalty notice against for non-compliance with its agreement. Where does the city go from here? We better find answers because there is no alternative to public transport. Car exhaust is already taking a toll on our lungs. sunita@cseindia.org

The Business Standard, 24 December, 2012, http://www.business-standard.com/india/news/sunita-narain-ponty-busesppps/496563/

Tagged with: Transport

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