ECONOMIC CHARACTERISTICS OF THE URBAN BUS TRANSIT INDUSTRY- A COMPARATIVE ANALYSIS OF THREE REGULATED METROPOLITAN BUS CORPORATIONS IN INDIA

Rinki Sarkar
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Rinki Sarkar: Delhi School of Economics

No 54, Working papers from Centre for Development Economics, Delhi School of Economics

Abstract: The present scenario with respect to bus transit corporations in major metropolitan cities in India, presents a paradoxical situation. Despite the critical role played by bus transit systems in catering to ever mounting demands of urban commuters, services have deteriorated. Rising levels of deficits appears to be a persistent problem. The principal purpose of this research work was to make an analytical assessment of deficiencies in bus transit operations by scrutinising the behaviour of 'costs' and a host of 'economic effects'. Towards this end, three major regulated urban bus transit systems providing 'conventional' type, fixed-route fixed Schedule mass transit services in the cities of Bombay, Madras and Delhi have been selected as case studies. Given diverse operating conditions, attempts have been made to empirically estimate 'cost functions' separately for each of these bus transit corporations on the basis of monthly time series data. A sound theoretical and quantitative framework is an integral part of the cost function analysis towards ensuring greater accuracy of results. On the whole, the empirical analysis revealed vital measures that could be taken for efficient operation of bus services. This paper summarises various facets of the study.

Pages: 48 pages
Date: 1998-02
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