118 cities to get new buses with govt help

With an aim to spruce up urban transport services and at the same time provide a stimulus to the economy,the government will provide assistance to 118 cities in acquiring a new fleet for their bus transport systems. At the same time,UPA’s flagship scheme Jawaharlal Nehru National Urban Renewal Mission (JNNURM) may be extended to 28 more cities having a population of 5 lakh and more,at an additional cost of Rs 25,000 crore to the centre. The 118 cities,having a population above two lakh,could acquire nearly 7,500 buses at a total cost estimated to be around Rs 2,000 crore. “Metro rail is not the only way of providing urban transport. We want to provide better public transport in cities and for this purpose we want to procure buses for nearly 118 cities. We want to provide (these cities) with not only the money but also facilitate its usage,” said union urban development minister Jaipal Reddy. The ministry has announced the scheme as a part of its 100-day agenda for governance.

To boost urban transport,the ministry has already written to the finance ministry,asking for removal of the 8 per cent excise duty on public buses. “The new fleet of buses will be modern,low-floor and semi luxury — a few of which will be air-conditioned,” Reddy added. The centre has also asked the states to waive off excise and octroi charges for public buses. The cost of these buses,depending on individual specifications,could vary from Rs 55 lakh to Rs 75 lakh.

The pattern of funding these buses will be similar to the one adopted under the Jawaharlal Nehru National Urban Renewal Mission scheme,an official added. The ministry may even bring out amendments to the existing guidelines for financial assistance under the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) to enable these cities to acquire a new bus fleet.

As a special stimulus to the auto industry,the government had sanctioned the acquisition of around 15,000 buses by around 61 mission cities under JNNURM in January. “These buses will be delivered by December 2009. Tenders for procuring buses in most cases have been finalised,” Reddy said.