Delhi’s New Premium Bus Service Aims to Ease Traffic by Reducing Private Car Dependency

The Delhi government announced an app-based bus aggregator system, the Delhi Motor Vehicles Licensing of Aggregator (Premium Buses) system, 2023, on Tuesday, to lower intra-city private car usage and pollution in the national capital. The initiative was announced with the consent of Lt Governor VK Saxena. 

The initiative encourages changing modes by providing intra-city travel via premium bus services of excellent quality, comfort, and dependability. The program is intended to encourage the middle and upper-middle classes to use public transportation.

“I hope that this service will significantly improve Delhi’s public transportation system.” People will abandon their vehicles and scooters in favour of using buses. “We worked hard for four years to make it a reality,” Delhi Chief Minister Arvind Kejriwal said in a Hindi post on X (previously known as Twitter).

Criteria For License Acquisition Eligibility

Applicants must have at least three years of experience operating and managing cars in public or shared transportation to be eligible for a license under the system. They are expected to maintain a fleet of at least 100 passenger buses or 1000 passenger cars every year, or a combined fleet of at least 100 buses and 10 vehicles equivalent to 1 bus. 

License applicants, like contract carriage buses, must follow all legal criteria relating to the operation of passenger vehicles. The concept requires that buses be no older than three years old and that buses entering service after January 1, 2025, be electric. Applicants must also have a corporation or branch office in the National Capital Region (NCR).

Details About Aggregator License

Aggregator licenses will be awarded for Rs 5,00,000 and will be valid for five years under the plan. Renewals for an additional five years can be obtained for Rs 2,500 before they expire.

Importantly, there will be no licensing charge for electric buses, which aligns with Delhi’s commitment to clean and sustainable transportation. License holders must run and maintain a fleet of at least 25 premium buses in small, midi, or standard sizes within 90 days of receiving their license.

Key Features

  • Route Flexibility: License holders have the freedom to choose prospective routes for running their premium buses.
  • Dynamic Fares: Fares are dynamic and cannot be less than the peak fare for Delhi Transport Corporation (DTC) AC buses.
  • Digital Ticketing: Only pre-booked digital ticketing is permitted; no physical tickets will be provided. All passenger fees must be collected solely through electronic or digital payment methods.

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Stuti Talwar

Expressing my thoughts through my words. While curating any post, blog, or article I'm committed to various details like spelling, grammar, and sentence formation. I always conduct deep research and am adaptable to all niches. Open-minded, ambitious, and have an understanding of various content pillars. Grasp and learn things quickly.

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