Delhi Integrated Multi-Modal Transit System Ltd.
A Joint Venture of Government of National Capital Territory
of Delhi & IDFC Foundation.
An ISO Certified Company  
Corporatization of Private Stage Carriage Buses Scheme
Client :Transport Department, GNCTD
Scope of Work :
  • Project Conceptualization
  • Feasibility Study
  • Clustering of Bus Routes
  • Economic Analysis & Business Modeling
  • Bid Process Management
  • Contract Management
  • Operations Management
Apart from these services DIMTS also carried out the following activities:
  • Scheme Report
  • Business Model
  • Draft document for RFQ
  • Draft document for RFP
  • Organizing of pre-bid conference
  • A draft of the Concession Agreement
  • Preparation and submission of a bid evaluation report
  • Preparation of a final Concession Agreement
Buses are the lifeline of Delhi city, transporting thousands of people daily from one corner to the other. Over the years however, with the increasing income levels, the demand and usage of private motor vehicles has increased thus leading to problems of congestion and pollution. In 2008, there were 5.5 million vehicles in Delhi, the largest number in any city in the world. Nearly 1,000 more are added on a daily basis. This has resulted in a fall in the share of buses from 60% in 2001 to 41.5% in 2008 and a rise in the use of private motor vehicles from 27.5% in 2001 to 35.4% in 2008. 

Though the buses, with a larger share, continue to be the primary mode of transport for the majority of the people, the demand for it will continue to fall as rising income levels allow more and more people to opt for private motorized vehicles.

To arrest this decline and to encourage people to shift to buses, it is important to provide safe, reliable, comfortable and well integrated bus system. 
Earlier System of Buses in Delhi 
Bus services in Delhi were provided by private stage carriage operators (PSCs), Delhi Transport Corporation (DTC) and the Delhi Metro Rail Corporation (DMRC), which provides connecting services to the metro rail system. The fig 1 below shows the relative strengths of each fleet in the capital.

However, a fully privatized system also failed to deliver a comprehensive, integrated network in Delhi. A combination of high DTC costs and PSCs that only run on profitable routes, meant that almost half of Delhi's 657 registered bus routes were not being operated at all, depriving citizens of access and forcing them onto more expensive transport modes. 

In addition, to make more profits, drivers rushed to pick up the maximum number of passengers in the least possible time and avoided off-peak hours. Often the passengers ended up waiting long time in the bus since operators refused to move out of a bus stop till they had enough passengers. This also resulted in over-crowding, which casued much discomfort to the passengers. 

The new bus system

In view of all the above problems, the Govt. of NCT of Delhi decided to revamp the bus system to provide a reliable, safe and comfortable travel to the citizens. It launched a scheme to corporatize the Private Stage Carriage operation of buses in Delhi and appointed DIMTS as Integrated Mechanism for the Private stage carriage buses corporatization scheme.

DIMTS worked on revamping the entire existing structure and re-grouped the 657 routes of Delhi into 17 clusters using digital models. It was decided that each cluster will be serviced by a private entity and DTC.

The private entities are awarded the cluster through a competitive bidding process for a period of 10 years. Each cluster consists of suitable bunch of routes such that competing routes don't overlap across operators. All operators are required to provide a scheduled bus service based on Unified Time Table. 
Performance Management System
In order to monitor the performance of the operators, DIMTS set about developing a performance incentive regime to reward or penalize the operator on the basis of the quality of service delivered. Following public consultation and research parameters chosen for operator evaluation by DIMTS included:
  • Service Reliability and Frequency
  • Bus Crowding
  • Journey Time
  • Affordability
  • Accessibility to Bus Stops
  • Bus Accessibility
  • Staff Attitude and Behavior
  • Personal Safety and Security during the Journey
  • Vehicle Cleanliness
  • Vehicle Repair
  • Access to Travel Information
The Role of Information Technology
Efficient monitoring of the performance of the buses requires the help of technology. In the new system there is a strong reliance upon modern location technology and intelligent transport systems to monitor operator performance and calibrate rewards and penalties.

Thus an automatic fare collection via a smartcard based system has been proposed to help reduce revenue 'leakage' through a cash-based fare box controlled by the operator. 

DIMTS has equipped each vehicle with an Automatic Vehicle Location System (AVL). The OCC will monitor the movement of each vehicle set against its adherence to the Unified Time Table (UTT) set by DIMTS. An algorithmic software system will calculate penalties and rewards for reliability and frequency. In case of foreseeable defaults the operator will notify DIMTS of the inability to deliver a service, allowing a suitable replacement to fill the gap. 
Systematic, Manual Checking
DIMTS is also aware of the need to rely on manual checking for verification of driver performance etc. For this reason, infraction reports and vehicle checking will be undertaken manually, at least for the time being. In addition to this, DIMTS will also introduce a biometric identification system to register and certify drivers, as well as, conductors. 
With in-built Performance Incentives
Operator adherence to high vehicle maintenance standards is likely to have a strong incentive through the provision of financial rewards for running a reliable system. Under-maintained buses are likely to break down more often, incurring the operator a financial penalty. 

Additional features like the Passenger Information System (PIS) will help in reducing the waiting anxiety of the passengers.