CUMTA looking at London model for generating urban transport fund

C Shivakumar

Chennai:

Chennai Unified Metropolitan Transport Authority (CUMTA) is looking at the Greater London Authority model for generating Urban Transport Fund.

This comes in the wake of Union government’s Unified Metropolitan Transport Authority Act providing for the establishment of a dedicated fund for the purpose of implementation of urban transport projects as the government feels huge investment needs at Central level cannot be met from traditional budgetary sources alone.

Interestingly, the Working Committee on Resource Mobilisation, which was formed by the executive committee of CUMTA under the chairmanship of state chief secretary, is looking at various models including the Greater London Model Authority model for generating urban transport fund.

Under Greater London Authority, the share of government grants consist of 56 per cent, fee, charges and other revenue sources consist of 34 per cent, reserves one per cent and council tax and collection fund worth 9 per cent.

 However, sources said that CUMTA is also looking at Singapore as well as United States model. Interestingly, it is believed CUMTA has requested Transport Department a sum of Rs10 crores as the initial corpus for CUMTA.

Sources said that various models of funds are being explored including imposing urban mass transit development cess on purchase of cars and commercial vehicles within the city besides imposing cess on issuance of registration certificate.

Interestingly, a Working Group on Urban Transport for 12th Five Year Plan recommended Urban Transport Tax on purchase of new cars and two wheelers at 7.5 per cent of the total cost of the petrol vehicles and 20pc in case of personalised diesel cars besides green cess on existing personalized vehicles and a green surcharge on petrol sold across the country.

The committee in its recommendations has stated that the number of cars and scooters or motor cycles in India is expected to grow by more than three times by 2021. The vehicle growth rate is expected to be faster than the urban population growth. As such the basic aim of  is to improve the public transport share to 60 per cent of all motorized trips by 2030 and reduce fatalities by 50 per cent in the 12^th plan.