Urbanisation and the Challenge of Ideal Transit Solutions

India aspires to become a developed nation by 2047. By the 2060s, over 60% of the population is expected to move to cities, making urban India the growth engine.

Urban Pressure

• Infrastructure Pressure: This large-scale rural-to-urban migration will create immense pressure on urban infrastructure, especially on public transport systems.
• Role of Urban Transport: Efficient, inclusive, and sustainable mobility systems will be essential to manage this shift and enable productivity in urban centres.
• Smart cities: They were envisioned to minimise daily commutes by integrating work and residence spaces.
• Implementation Gap: However, most new smart cities remain non-functional, failing to take off like China’s planned urban models.
• Uncontrolled Urban Expansion: Meanwhile, existing metros and tier-1 cities continue to expand rapidly, intensifying urban stress.
• Consequences of Poor Planning: This results in rising traffic congestion, inadequate public transport, and a lack of last-mile connectivity.

Steps taken by the Government to tackle Urban Mobility crisis

• PM e-Bus Sewa – Payment Security Mechanism: Aims to induct nearly 10,000 urban buses.
  
• PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-Drive): Targets procurement of:
  • 14,000 e-buses
  • 1,10,000 e-rickshaws
  • e-trucks and e-ambulances
• Rising Metro Investments: The Budget also increased allocations for metro rail development across Tier 1 cities, aligning with efforts to cater to high urban density and reduce congestion.

Challenges Associated with Urban Transportation

• Urban Bus Deficit: India needs 2 lakh urban buses, but only 35,000 are operational, highlighting a major supply-demand gap.
• Limited Resources: While there’s a strong push for green mobility, funding constraints limit scaling and sustainability.
• Access Gap: Only 37% of urban Indians have easy access to mass transit, compared to over 50% in Brazil and China.
• Challenges in Cost Recovery: Most metro projects face difficulty in recovering costs, with low ridership and operational deficits.
• Last-Mile Issues: High fares lead to reduced usage, while poor last-mile connectivity deters commuters further.
• Limited Fiscal Space: India cannot afford large-scale metro subsidies like Western countries, limiting pricing flexibility.

Challenges in Current Urban Bus Investments

• Budget Push: The 2025 Budget has boosted allocations for urban bus systems, especially to strengthen metro city connectivity. The aim is to enhance last-mile access.
• Private Sector Reluctance: Despite government support, private investments in public transport remain limited due to low return certainty and long gestation periods.
• Shift to Expensive e-Buses: Earlier emphasis on CNG buses has now shifted to electric buses, which have higher upfront and maintenance costs, increasing the financial burden on public agencies.
• Exploring Alternatives: Future transit models may increasingly focus on road-based modes powered by electricity, CNG, hydrogen, or biofuels. Yet, important alternatives like trams and trolleybuses are often overlooked.
• Policy Blind Spot: Despite being more efficient over the long term, trams and trolleybuses receive minimal policy attention. Their life cycle analysis shows that they can outperform e-buses in both financial and environmental terms.
• Sustainability Mismatch: Current focus on e-buses may be leading to a subsidy-driven ecosystem, rather than a self-sustaining transit model. This misalignment raises concerns about the long-term viability of such investments.

Comparative Life Cycle Profitability

• Trams: Offer 45% profitability over a 70-year life cycle with climate alignment and scalability.
• e-Buses: Record an 82% net loss over the same period due to high operational and replacement costs.
• Trolleybuses: More efficient than e-buses but still incur a minor net loss over the life cycle.

Case for Adopting to Tram System

• Kochi Tram: Kochi plans to launch a tram pilot project, offering a revival opportunity for sustainable transit. Trams provide low-cost, eco-friendly urban mobility with high scalability.
• Kolkata: Kolkata preserved its tram legacy, now seen as a smart urban strategy.
• Global Examples: Global cities like Zurich and Amsterdam have revived trams, proving their modern-day relevance.
• Policy Rethink: It’s time for a policy rethink to integrate proven old technologies into future mobility planning.

Conclusion

Urbanisation demands inclusive and sustainable mobility solutions, where trams and other road-based public transport must receive equal policy attention, avoiding an over-reliance on costly e-buses and metro systems by applying life-cycle cost analysis to transport investments