In India, urban transport has been the monopoly of Government companies. Caught between providing low-fare transportation to the urban poor of Indian cities and being a model employer giving high wages with job security to employees, government companies are struggling to break even. A partnership is now being sought with the private sector to remedy the situation. Private enterprise with increased managerial efficiency and reduced costs combined with public sector values will provide an immediate solution to the problems of Urban Transport. Bangalore Metropolitan Transport Corporation (BMTC) began a scheme of hiring private buses that has been working extremely well. This paper analyses the working of the private operator scheme and presents a detailed economic and financial review, and concludes that this could well mark the beginning of a long and fruitful partnership between the public and private sectors in Urban Transport.
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