Financial Models of AICTSL Bus Operations

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Purpose of AICTSL

• Established : 2006
• Focus : Public Private Partnership

• Objective
• Minimum government investment
• Increase operators
• Optimum financing solution through
• Government schemes
• Contests
• Funds
• Increase PT ridership

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 AICTSL Service

NET Cost Gross Cost VGF Model Cluster Model FaME Model AMRUT
Model Model AMRUT • Electric Phase II
• City Buses • BRTS 65 buses 260 buses Buses
• CNG Buses
73 buses 60 buses 40 buses
400 buses
• Intercity • 80 E-bus
/state
64 buses

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 Net Cost Model
• Intracity bus: 73 AICTSL Responsibilities Operator Responsibilities
Scheduling 30% bus cost
• Ridership: 48,300 passenger per
ITMS Operate and Maintain Bus
day
Collect fare
Premium to AICTSL

• Intercity and interstate: 64

• Ridership: 16,000 passengers per AICTSL Responsibilities Operator Responsibilities

day Permit from RTO Purchase bus

Administrative aid Operate and Maintain Bus
Collect fare
Premium to AICTSL

Advantage: Bus service for city

Minimum interference
Disadvantage: Operator lose interest if loss
Limited coverage 4
 Gross Cost Model
• BRTS: 60 AICTSL Responsibilities Operator Responsibilities
Collect Revenue 30% bus cost
• Ridership: 60,000 passenger per
Pay operator premium Operate and Maintain Bus
day
Scheduling
• Innovation ITMS

• Ad rights to AICTSL

• Intercity/state premium cross

subsidized

• Started City DUTF (5-7 Cr/

annum)

• ITMS (AVLS + AFCS)

Advantage: Self sustainable BRTS

Complete control on operation
Disadvantage: Costly 5
 VGF Model
• Intracity : 65

• Ridership: 35,039 passenger per

day
AICTSL Responsibilities Operator Responsibilities
Pay operator VGF 10% bus cost
Scheduling Operate and Maintain Bus

• Innovation ITMS Collect fare

• C-DUTF used for VGF

Advantage: Non-viable routes serviced

Increased coverage
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 Cluster Model
AICTSL Responsibilities Operator Responsibilities
• Intracity : 40% of project cost Operate and Maintain Bus
Scheduling Collect fare
• Ridership: 35,039 passenger per
ITMS
day

• Intercity :
Cluster example
• Ridership: 35,039 passenger per Route Details
Type of Services
Source Destination
day Indore Dewas Inter City Route
Indore Sonkatch Inter City Route
Indore Shajapur Inter City Route
• Innovation Indore Vidisha Inter City Route
Indore Ujjain Inter City Route
• Clustering methodology Gangwal bus Stand Nagar Nigam Intra City Route
Dewas Naka Railway Station/Sarwate Stand Intra City Route
• Number of operator increased Hawa Bangla Rajendra Nagar Intra City Route

260 buses introduced

Coverage increased @ low cost
Advantage:
Clustering makes profit for operator
Ridership increased to 2 Lakh per day 7
 Cluster Model
• Intracity : 40

• Ridership: 12,000 passenger per

day
AICTSL Responsibilities Operator Responsibilities
• Innovation Scheduling Operate and Maintain Bus
• Intracity + Indore Bhopal Volvo ITMS Collect fare
cluster Electricity bill
VGF 3.5 lakh
• Reduced operating costs

Advantage:
Electric bus operating deficit overcome
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State of the Art Model (400 Buses)
₹ 31.50/ bus/km
• Procure buses
• Operating Agency
For operator • O&M
• 40% bus cost
• Premium
• Depot
AICTSL
• For Fare collection • Collect fare
• Ad space • Pay AICTSL premium
• Route modification Fare Collection • ITMS
• Fare hike ₹ 32.40/ bus/km Agency • ETM
• Mobile ticketing

Per KM Rate for Bus Operator ₹ 31.50 / KM

Per KM Rate for Revenue Collection Agency ₹ 32.40 / KM
Difference in Rate ₹ 0.90 / KM
Per Bus Revenue to AICTSL @ 180 KM for Contract Term of 7 years ₹ 4,13,910 / Bus

Advantage: With investment of ₹ 46.40 Cr only, introduction of 400 Intracity buses for 7 years
Earning ₹16.32 Cr
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 E-Bus (New service)

Service Details Financial Details

S.No Particular Intracity Bus BRT Bus S.No Particular Cost per Unit Total Cost
1 No. of Buses 50 30
Intracity Buses
2 Financial Model Net Cost Contract Gross Cost Contract 1 ₹ 1,20,00,000 ₹ 60,00,00,000
(50 Nos.)
12 m Low Floor, BS
3 Bus Type 9m, BS VI BRT Buses
VI 2 ₹ 1,50,00,000 ₹ 45,00,00,000
(30 Nos.)
Capital Cost
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Subsidy
40% 40% 3 Grand Total - ₹ 105,00,00,000
5 O&M Operator Operator VGF required
4 - ₹ 42,00,00,000
@40% of Capex
6 Depot Facilities AICTSL AICTSL
7 Charging Cost Operator Operator
8 Fare Collection Operator AICTSL
9 Assured km 180 180

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 AMRUT II

E-Bus (New service) 40% Capital VGF

Revenue OPERATOR
Cross
Intracity BRT L1 Bid for BRT
Advantage: subsidize
Overcome e-bus operating deficit (Net Cost) (Gross Cost)

Depot

AICTSL
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Impact of Implemented Financial Strategies

• Ridership

• 2012 : 80,000 per day

• 2021 : 2.5 lakh per day

• Number of operator increased

• Induced mode shift

• Introduced alternate fuelled buses

• Electric infrastructure strengthened

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THANK YOU

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