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The government think tank NITI Aayog has recommended that private operators should be allowed to run inter-state buses to augment public transport.
Terming India's transport network as "not planned holistically", the Aayog in its Three-Year Action Agenda to be implemented till 2019-20 said the public transport capacity can be augmented by hiring buses on long-term leases.
"We should augment [the] capacity of road-based public transport by hiring buses on long-term leases and permitting private providers to operate inter-state buses," it said on the agenda.
This will help reduce state governments' financial stress while providing an additional revenue stream, it said.
The Aayog also pitched for expediting Motor Vehicles Bill. "The Motor Vehicles (Amendment) Bill, 2016 proposes that private sector providers should be allowed to operate in the passenger vehicle segment. In particular, states should be able to grant exemptions in stage carriage and contract carriage permits for promoting public transport," it said.
The Bill has been pending in Parliament, it said adding, "The passage of the Bill should be expedited to increase the capacity of public transport in the road segment."