Delhi Motor Vehicles Licensing of Aggregator (Premium Buses) Scheme, 2023

November 24, 2023

In a significant development for India’s transportation sector, the Delhi government has introduced the Delhi Motor Vehicles Licensing of Aggregator (Premium Buses) Scheme, 2023. This scheme is tailored exclusively for premium buses, marking a historic milestone in the nation’s transportation sector.

Defining Premium Buses

The scheme defines a “Premium Bus” as a full-AC luxury public bus with a seating capacity of at least nine passengers. These buses will offer pre-reserved reclining seats and come equipped with Wifi, GPS, and CCTV for enhanced comfort and reliability.

Eligibility Criteria for Bus Licenses

To be eligible for a bus license under this scheme, applicants must have a minimum of three years of experience in operating and managing vehicles in public or shared transportation. They are required to maintain a fleet of a minimum of 100 passenger buses annually or 1,000 passenger cars annually, or a mixed fleet comprising a minimum of 100 buses with 10 cars equivalent to one bus.

Key Conditions for Premium Buses

The scheme stipulates that the ‘onboarded’ bus must not be more than three years old (for CNG buses), and buses joining the service after January 1, 2025, must be electric. Additionally, applicants must have a corporate or branch office located in the National Capital Region.

License Details and Renewals

Aggregator licenses will be granted upon payment of ₹5 lakh and will be valid for a five-year period. Renewals for another five years can be acquired before expiry by paying ₹2,500. Importantly, no license fee will be levied on electric buses.

Operational Requirements for License Holders

License holders are required to operate and maintain a fleet of at least 25 premium buses of various sizes, to be made operational within 90 days from the date of license grant.

Fare Determination and Digital Ticketing

License holders will be permitted to determine bus routes, provided fares are dynamic and no lower than the peak fare of Delhi Transport Corporation AC buses. Only pre-booked digital ticketing will be permissible, with all charges from passengers collected exclusively through electronic or digital payment modes.

Current Bus Fleet in Delhi and Future Vision

Official data indicates that Delhi currently has a fleet size of 7,135 buses, with calls for at least 11,000 buses plying on Delhi’s roads. The introduction of the Premium Bus Aggregator Scheme aims to enhance the quality and efficiency of public transportation in the city.

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