ABSTRACT
Public transport service plays a vital role in the overall development of a country. The liv-
ing standard in many developing countries is changing. While developing cities are showing
improvements in economic growth in terms of GDP, middle class people are no longer at-
tached to the particular transport services; higher income society is going to the higher car
ownership and higher expectations in terms of better mobility and better quality of services.
Public transport systems are known to be sustainable modes in terms of space and energy
efficiency, and environmental and social benefits. A good networked public transportation
system with time-bound schedules, reliable services, comfort, competitive travel times, and
affordable prices, are some of the required traits for providing sustainable transport services
and commuter satisfaction. Passenger transportation has an impact on all aspects of mobil-
ity and is an important part of overall economic development. Improving the performance
of public transport undertakings is becoming more and more critical due to the paucity of
public funds, increased demand on transport services, and expanding social needs. Of late,
the performance measurement and evaluation systems have been gaining importance (Kit-
telson Associates et. al. 2003, Sulek and Lind 2000). Increased urbanization has increased
the number of passenger vehicles in the cities in developing countries such as India. The
Road Transport Corporations Act came into effect in India in 1950 and led to various state
governments setting up respective State Road Transport Corporations with an objective of
providing affordable transport services within the state as well as across states. Over the
years, most of these corporations have become loss making. The trade-off between com-
mercial objectives and social responsibility goals of these state owned corporations became
an issue of major concern.
