Cheaper BMTC tickets may benefit all stakeholders: Study

The study presents a scenario-based analysis of change in BMTC’s fare to understand possible strategies towards sustainable transportation in Bengaluru.   | Photo Credit: SOMASHEKAR G R N

At a time when citizens and citizen organisations are demanding that the government reduce fares of Bangalore Metropolitan Transport Corporation (BMTC) services, a recent study by a city-based research lab indicated that cheaper tickets may benefit all stakeholders. Their findings showed that reduction of fares could lead to an increase in ridership and thereby reduce congestion on roads and emissions.

The study conducted by a city-based research lab ‘Fields of View’ presents a scenario-based analysis of change in BMTC’s fare to understand possible strategies towards a sustainable transportation in Bengaluru.

Researchers examined the impact of three scenarios after a 10% reduction in BMTC’s average fare prices, which saw an increase in ridership. However, a 10% increase in BMTC’s average fare prices, according to the study, leads to a possible 20% reduction in ridership and possibly increase annual loss by ₹220 crore.

According to the researchers, the gross loss of BMTC in 2018-2019 was ₹538.2 crore. “For 10% reduction in price, the implication on revenue for BMTC ranges from reduction of this loss by ₹362.2 crore to an increase of loss by ₹183 crore,” the research stated.

To understand the effects of change in fare in public transportation, the researchers studied the Brihanmumbai Electricity Supply and Transport (BEST), Delhi Metro Rail corporation (DMRC), Delhi, and the Delhi Metro Rail Corporation–Airport express line and considered demand elasticity, revenue generated through ridership and the profit and loss of the BMTC.

The study recommends that it was important for BMTC to increase the capacity and fleet proportional to the population of the city. “BMTC would require 14,952 buses in order to reach India’s average of 1.2 buses per 1,000 population,” they said.

Srinivasa Alavilli of Citizens for Bengaluru (CfB) said that citizens and various organisations have been demanding reduction in fare. “We had requested Deputy Chief Minister C.N. Ashwath Narayan to reduce the fare and announce it in the budget and had also written to the Chief Minister. Unfortunately, it did not happen. Investment in public transport is investment in public health,” he said.

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Printable version | Jun 15, 2021 4:26:03 PM |

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