Implementing a step change in the quality and supply of bus services in Delhi

With a population of 18 million people, Delhi is the eighth largest metropolis in the world. Although the city is investing in Metro, the bus network remains the backbone of the public transport network. However, crowding and the abysmal safety record of the 'Blueline' private bus operators running 3850 buses across the city, has prompted the High Court to demand action. With over 100 deaths in 2007 alone and earning the notoriety as ‘killer buses’, there has been an urgent call to improve the quality and safety of services and deliver enhanced capacity across the city.

Delhi is implementing a step change in the quality and supply of bus services, with the intention of doubling output within two years. Private sector contractors will operate alongside public operator, Delhi Transport Corporation, within an integrated framework. The Delhi Integrated Multi-Modal Transit System Limited (DIMTS) has been established to manage the process.

Steer undertook a review of contract options to encourage enhanced safety and efficient operation. We then helped to develop the concession documents and specify a performance regime.

DIMTS divided the network into 17 corridor-based clusters, covering 657 routes which will ultimately be served by 11,000 buses, with 40% provided by the private sector. We worked with DIMTS to outline the concession scheme, which is as follows:

• Contracts will be offered on a gross cost basis, with a performance incentive regime (recommended as there was no demand data for over half the routes)
• The operator will be required to supply buses and drivers
• Bidders will be allowed to offer premium-priced services on the same routes at their own commercial risk, with unregulated fares. The premium services – for example, an air-conditioned, all seated service – would operate in addition to the base timetable.