House panel recommends airport-style overhaul for bus terminals: Details

A parliamentary panel has proposed a national authority, common terminal standards and fee-based access for private buses, alongside digital permits and safety reforms

The Parliamentary Standing Committee on Transport, Tourism and Culture has proposed an airport-style overhaul of India’s bus transport system, including a national authority to develop and standardise terminals and a framework allowing private operators to use government-owned facilities on payment of a fee.

 

In a report tabled in the Rajya Sabha on Tuesday, the committee said bus transport must move towards next-generation mobility with more user-friendly services, while addressing gaps in terminal infrastructure, regulatory access, digital integration and passenger safety.

 

Why India’s bus terminals need an overhaul

 

The committee cited Ministry of Road Transport and Highways data showing that India has around 4.4 lakh buses, of which about 1.1 lakh are state-owned and 3.3 lakh are privately owned.

 

 

Despite buses carrying more passengers daily than the railways, the panel said private operators are often denied access to government-owned terminals and passengers are consequently forced to board or alight from roadsides.

 

It recommended setting up a National Bus Terminals Authority to develop, standardise and manage terminals across the country.

 

Drawing a parallel with aviation, the committee noted that airlines do not build or own the airports they operate from, but pay for access to terminal infrastructure. It proposed a similar separation between terminal management and bus operations.

 

The authority would establish common infrastructure and management standards while enabling systematic access for both public and private operators. 

 

Why private buses struggle to access government terminals

 

The committee said private operators are frequently denied entry to state-owned terminals because these facilities are controlled by State Road Transport Undertakings (SRTUs), which also operate bus services and compete with private players.

 

Private operators told the committee that access can be restricted even when terminal capacity is available. Besides inconveniencing passengers, this also deprives government-owned terminals of potential revenue from entry fees.

 

The panel therefore proposed a non-discriminatory access framework under which private operators could use government terminals by paying a fee. It cited Delhi's Kashmere Gate ISBT, where private buses are charged for entry, as an existing example.

 

A new standards code for India’s bus terminals

 

The committee also recommended framing a National Code for Bus Terminals within a year to prescribe minimum standards for sanitation, lighting, seating, security, signage, digital passenger information and accessibility.

 

The code could also serve as a benchmark for viability gap funding and other forms of central support for terminal projects.

 

Separately, it recommended notifying a standard design for modern bus stops on expressways and highways and circulating it among MPs for possible funding through the MPLADS scheme.

 

How a National Bus Digital Grid could change bus travel

 

The committee has proposed a National Bus Digital Grid to enable live tracking and unified ticket booking across public and private bus operators.

 

It called for interoperability standards and a public live-tracking layer aligned with Indian Railways specifications. The proposed ecosystem could also include a moderated crowdsourced rating system linked to permit databases and a GIS-based network atlas using vehicle-tracking and toll data.

 

The system could publish information on punctuality and predictability, along with hazard maps. The committee recommended phased participation before making the system mandatory for commercial permit holders and called for a measurable programme of work for the platform within six months.

 

What is the proposed All India Passenger Permit?

 

The panel also recommended replacing the existing All India Tourist Permit with an All India Passenger Permit within a year.

 

The proposed permit would be issued by the state where a vehicle is first registered, with its operating rights and conditions specified on the permit.

 

For enforcement, the committee proposed integrating VAHAN, FASTag and vehicle-location data instead of relying on physical checks. It also called for an end to border check posts in the six states where they continue to operate and for monitoring centres to oversee digital enforcement.

 

The panel further recommended working with the insurance regulator to ensure compensation claims by injured passengers are not left open to dispute.

 

What other bus safety and fleet reforms are proposed?

 

On safety, the committee recommended completing the network of Automated Testing Stations on a district-wise basis to make vehicle fitness testing more objective.

 

It proposed checks of fire-safety equipment, emergency exits and alert systems during every fitness test, along with an examination of the need to retrofit sleeper and school buses.

 

The panel also called for published safety ratings for bus operators based on accident history, enforcement records and passenger feedback, with the ratings potentially taken into account when permits are renewed.

 

To modernise the fleet, the committee proposed a Fleet Transition Compact that would separate vehicle ownership from operations, allowing operators to run buses without bearing the full capital cost of owning them.

 

The proposal includes leasing models, a review of scrapping incentives for private operators and bulk procurement of electric buses.

 

The committee also recommended a time-bound transition plan for electric buses, with charging infrastructure aligned with operating routes, along with an end-of-life framework for electric buses and their batteries.