In the past, UITP covered the article on India Budget 2017-18, highlighted that how Government of India (GoI) is making major investments in transport sector. However, it is equal responsibilities of each state of make investment in the transportation sector as transport is still a state subject. 

State governments across India are still allocating small funds towards transport. It is important to highlight that some finance minister does not even use the word "Public Transport or Transport" in their entire budget speech. 

The amount allocated for transportation and major projects in key Indian States are given below:


100% = INR 480 billion

The state government proposed to add 736 more buses under cluster scheme during 2017-18. The government allocated INR 1 billion for development of bus terminals and depots during 2017-18

To provide last mile connectivity to commuters, Government has approved the Letter of Intent scheme and 10,000 new auto permits will be issued

The government has approved Metro phase-IV comprising six corridors with the length of 104 KM and to procure 582 Additional Rolling Stocks to facilitate the passengers of Metro commuters. The government allocated INR 1156 crores for DMRC


100% = INR 2,248 billion

There are 7 cities selected under Smart Cities Programme (Round I: Pune and Solapur and Round 2: Kalyan-Dombivali, Nagpur, Nashik, Thane and Aurangabad). The government allocated INR 16.0 billion for Smart cities

There are 44 cities shortlisted under AMRUT (Atal Mission for Rejuvenation and Urban Transformation), covering basic infrastructure such as water supply, sewage, urban transport, and green spaces in urban areas. The government allocated INR 18.70 billion for AMRUT

The work on the Colaba-Bandra-Seepz (metro line – 3) has commenced and work orders have been given for Dahisar – D. N. Nagar (metro line 2A) and Dahisar – Andheri (Metro line 7). An outlay of INR 710 crore has been allocated for metro projects in Mumbai, Nagpur and Pune


100% = INR 2,062 billion

Bengaluru Metro work for line between Silk Board to K. R. Puram will be commenced. The government allocated INR 12.5 billion in the current year

Directorate of Urban Land Transport (DULT) has entered into MoU with Ministry of Railways to undertake Sub Urban railway projects through SPV. The budget of INR 3.45 billion has been allocated for this program

The scheme of providing hired cycles will be taken up in select clusters of Bengaluru city, in line with Mysore city

BMTC will induct 3000 new buses, out of which 1500 new buses will be purchased and remaining 1500 buses will be procured on lease basis. It is proposed to introduce 150 Electric Buses in Bengaluru City and 50 Electric Buses in Mysuru City

Further, a total of 3250 new buses will be purchased by transport corporations. 1050 buses by North West Karnataka Road Transport Corporation (NWKRTC), 700 buses by North East Karnataka Road Transport Corporation (NEKRTC) and 1500 buses by Karnataka State Road Transport Corporation (KSRTC)


100% = INR 1,496 billion

Major expenditures under Transport head is towards civil aviation, road and bridges, road transport

There was no mention of Transport, Urban Mobility, Metro or Buses in the budget speech


100% = INR 1,080 billion

Gujarat State Road Transport Corproation (GSRTC) is operating inter-city and rural bus service. The government allocated a subsidy of INR 3.01 billion

The government made provision of INR 0.25 billion for equity contribution in SPV for Ahmedabad Mumbai high speed rail

Further, the government sanctioned a loan to Metro Link Express for Gandhinagar and Ahmedabad (MEGA) Company Ltd. for a sum of INR 0.60 billion

MoUD has selected 6 cities (Gandhinagar, Ahmedabad, Surat, Vadodara, Rajkot, Dahod) in Gujarat as part of Smart Cities Mission. The state government has allocated INR 5.8 billion for the same

The ministry has selected 11 mission cities under AMRUT program. The state government has allocated INR 5 billion under the program as part of their contribution


100% = INR 1,569 billion

The state government allocated INR 4.50 billion for the development of Visakhapatnam, Kakinada and Tirupati under National Smart City Missions. Further, the government sanctioned INR 1.5 billion for 13 more Smart Cities viz., Vizianagaram, Eluru, Vijayawada, Guntur, Ongole, Kurnool, Ananthapur, Kadapa, Nellore, Machilipatnam, Chittoor, Rajahmundry, Srikakulam

The government sanctioned INR 3.0 billion to develop 33 cities under AMRUT Programme. The focus will  be laid on urban water supply, sewerage facilities, storm water drains, public transport facilities and creation of green spaces in urban areas

The tribal sub-plan includes works to provide connectivity to ST habitations by purchase of buses by APSRTC for INR 9 crores

The state government sanctioned a loans of INR 3.4 billion to Andhra Pradesh State Road Transport Corporation (APSRTC) for purchase of Buses and general activities

There is need for more investment from the state government in public transport sector. The current share of investment in public transport is not sufficient. It is important to highlight that investment in public transport has multiplier effect on the economy. The analysis of stimulus package in the US showed that per amount invested, investing in public transport creates up to twice as many jobs as investment in other areas, such as highways. This is due to higher space efficiency (thus fewer resources required for land acquisition), complexity of projects and thus variety of competences required.