Fare integration among competing bus operators in Odisha

Abstract

The public transport system in Odisha consists of a complex network of bus operators, including the state-managed Odisha State Road Transport Corporation (OSRTC), the government-supported LAccMI scheme, and multiple privately operated bus services. These providers function autonomously, often competing for ridership, resulting in pronounced variations in fare structures. While publicly funded services maintain standardized or subsidized pricing, private operators implement fare policies influenced by market demand, route efficiency, and operational expenditures. This inconsistency in fare structures poses a challenge to fare predictability, impedes multimodal integration, and reduces the overall attractiveness of public transport as a preferred mobility option. This research examines the feasibility of implementing a harmonized fare system among competing bus service providers in Odisha. It aims to evaluate the discrepancies in fare-setting mechanisms across operators, analyse the competitive dynamics influencing pricing models, and identify institutional, regulatory, and technological constraints in establishing an integrated fare framework. A core component of this study will be to assess whether a unified fare strategy can be developed while ensuring financial sustainability for private operators and maintaining passenger affordability. Utilizing a comprehensive review of fare system models, stakeholder engagements, and comparative case studies from national and international contexts, this study will explore potential fare integration methodologies. These may include smart ticketing solutions, zonal and distance-based pricing, and interoperability of digital payment mechanisms such as the National Common Mobility Card (NCMC). By addressing fare fragmentation and competition-induced inefficiencies, the study will offer strategic policy recommendations to establish an integrated, equitable, and efficient fare system for Odisha’s regional bus transport network. The proposed solutions aim to enhance affordability, operational feasibility, and user convenience, thereby fostering a sustainable and seamless public transport ecosystem. Keywords: Fare Integration in Public Transport, Tariff Rationalization, Competition and Fare Disparities, Common Ticketing