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Despite serving millions and bridging critical first- and last-mile gaps, India’s paratransit sector remains informal, under-regulated, and excluded from mainstream urban mobility planning.
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India is home to the largest number of auto-rickshaws in the world, accounting for nearly three out of every four globally. Commonly referred to as paratransit or Intermediate Public Transport (IPT), this sector in India encompasses a wide array of modes ranging from two-wheelers adapted for passenger services to minibuses with capacities of up to 30 seats.
Paratransit services in India primarily operate informally and independently, providing flexible transportation options with minimal regulatory oversight. These services are indispensable to urban mobility, effectively bridging the critical first- and last-mile connectivity gaps left unserved by formal public transport networks.
By formalising paratransit and integrating it into the transport planning mainstream, India can unlock the sector’s true potential, ensuring equitable access, reducing congestion, supporting livelihoods, and advancing the broader goals of urban sustainability and social justice.
Despite their significance, government agendas at the centre and state levels have failed to integrate paratransit into formal urban transport systems. The informal and unregulated nature of these services often results in sub-standard service quality for commuters. At the national level, though the National Urban Transport Policy (NUTP) acknowledges the role of paratransit, actionable strategies for its formal inclusion remain limited.
Paratransit continues to play a pivotal role in meeting urban mobility demands across Indian cities. Despite constituting a small fraction of the vehicular population, its modal share is significantly higher. For instance, in cities such as Jaipur and Amritsar, paratransit vehicles account for only 2 percent of the total registered vehicles but cater to nearly 20–25 percent of the total trips. Similarly, the modal share of paratransit in Lucknow and Guwahati is estimated at approximately 17 percent and 15 percent, respectively. In metropolitan cities like Mumbai, Chennai, and Bengaluru, the share of Intermediate Public Transport (IPT) in work trips ranges between 1.5 percent and 5 percent.
Paratransit often emerges as the primary mode of transportation in Tier 2 and Tier 3 cities where formal public transportation systems remain inadequate. In 2021, of the 1.5 million operational e-rickshaws in India, only about 150,000 were registered, highlighting serious concerns regarding their regulation and monitoring. This scenario underscores the urgent need for their formalisation to ensure safety, service quality, and effective integration into city mobility systems.
Despite significant government agendas at the centre and state levels, the ULBs have failed to integrate paratransit into formal urban transport systems.
In India, IPT is broadly classified into two categories: i) contract carriage, which offers flexible pick-ups and drop-offs aligned with passenger demand, and ii) Informal Public Transport, operating on fixed routes determined by the Regional Transport Office (RTO). Permits issued for these services are categorised into Open Permits, allowing operation across city areas without restrictions, and Closed Permits, which confine operations to specific areas within the city. Notably, there is no cap for the issuance of permits for e-rickshaws, and they are renewed every five years.
Paratransit policies in India vary significantly across states, with each RTO enforcing distinct regulations based on local traffic, safety, and urban conditions. However, paratransit often remains a low priority within the broader responsibilities of RTOs, leading to gaps in service quality, vehicle fitness, and passenger safety standards. This regulatory neglect has contributed to a negative perception of paratransit among both the public and policymakers.
A nationwide survey of approximately 22,000 IPT drivers revealed that many compete intensely for passengers, often blaming formal public transport modes for their declining ridership. The resulting financial strain affects their health and limits access to essential services, given their lack of formal financial security or social protection mechanisms.
In cities such as Ahmedabad and Chennai, paratransit modes compete directly with public transport systems instead of complementing them. This parallel operation exacerbates urban congestion and pollution, undermining efforts to create an integrated, sustainable mobility ecosystem. Although India is actively promoting the electrification of paratransit fleets, many cities, including Surat, Pune, and Rajkot, continue to rely predominantly on conventional CNG-powered auto-rickshaws. Without integrating paratransit into seamless multimodal networks, electrification alone will not resolve congestion or accessibility challenges.
Paratransit integration is only possible if governments embrace institutional integration, empower operators through cooperative structures, and invest in infrastructure that supports cleaner, safer, and more efficient services.
Furthermore, the absence of a unified regulatory framework excludes paratransit from essential infrastructural provisions such as dedicated parking, charging infrastructure for e-rickshaws, and targeted social security schemes for drivers. While formal regulations exist for online aggregators, offline paratransit operators lack similar clarity and uniformity, creating a fragmented and inequitable regulatory environment across states.
The following measures are required to build an inclusive, efficient, and sustainable urban mobility ecosystem:
Paratransit is the invisible backbone of urban mobility in India. Yet, its informal status, fragmented regulation, and systemic neglect have pushed it to the margins of urban transport discourse. As Indian cities rapidly urbanise and aspire toward multimodal, climate-resilient mobility systems, paratransit must be recognised not as a competitor but as a critical ally.
Such integration is only possible if governments embrace institutional integration, empower operators through cooperative structures, and invest in infrastructure that supports cleaner, safer, and more efficient services. Lessons from Chennai and Kochi, as well as global examples like Jakarta, demonstrate that inclusive mobility is achievable when governments commit to bridging the formal-informal divide with purpose and vision.
By formalising paratransit and integrating it into the transport planning mainstream, India can unlock the sector’s true potential, ensuring equitable access, reducing congestion, supporting livelihoods, and advancing the broader goals of urban sustainability and social justice.
Nandan H Dawda is a Fellow with the Urban Studies programme at the Observer Research Foundation.
Pranav Dubey is an Intern at the Observer Research Foundation.
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Dr Nandan H Dawda is a Fellow with the Urban Studies programme at the Observer Research Foundation. He has a bachelor's degree in Civil Engineering and ...
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