<p>Bengaluru: The 5th State Finance Commission has recommended introduction of congestion charges on <a href="https://www.deccanherald.com/tags/bengaluru">Bengaluru</a>’s busy roads like the Outer Ring Road (ORR) by using a FASTag-type concept. The mechanism, it believes, will generate revenues to the fund-starved corporations and also reduce the city’s traffic congestion and pollution. </p><p>The government had constituted a three-member commission headed by former MP Dr C Narayanaswamy to evaluate the sources of revenue and expenditure in each of the city corporations in Bengaluru and recommend to the state government for grant-in-aid to one or more corporations. </p><p>In the 200-page report, the commission has found that the West and North Corporations were not strong financially compared to three other corporations. Among different suggestions to raise funds, the commission has recommended the introduction of congestion charge by making a reference to a similar concept adopted by London in 2003.</p>.Why gridlocked Bengaluru must rethink its streets.<p>“This charge is on a daily basis on vehicles entering a defined zone with fully camera-based enforcement. It is innovative because it is one of the first large-scale urban road pricing systems globally,” the report states, pointing to the London model. “It uses a pricing policy not just to raise money but also to change public behaviour.”</p><p>The commission goes on to state that the congestion fee generates predictable, recurring revenue and the revenue is largely reinvested in public transport and road improvements.</p><p>“It has high potential in Bengaluru City Corporations and can be proposed for Bengaluru’s bus routes.” </p><p>The report has noted that the levy of such a charge must be introduced on roads covered with adequate public transport systems, mostly the Metro. “It is recommended to levy the congestion charges on the ORR and other feasible areas, where adequate public transport is available to the selective type of vehicles which cause congestion,” the commission has noted. </p><p>The recommendations were made after the commission studied the finances of Greater London with “special interest” and explored the innovative strategies for raising revenue and congestion charge was one of them. </p><p>Among the other suggestions include generation and trading of carbon credits on the lines of Indore Carbon Credit Aggregator Model, municipal bonds, entertainment fees and corporate social responsibility (CSR) funds. </p><p>The idea of introducing congestion charge in Bengaluru is not new.</p><p>A similar suggestion was earlier proposed by mobility experts when Chief Secretary Shalini Rajneesh had convened a meeting of different stakeholders last year. In 2014, the government had also commissioned a detailed congestion pricing study for Bengaluru but it remained on paper owing to lack of robust public transport systems. </p>
<p>Bengaluru: The 5th State Finance Commission has recommended introduction of congestion charges on <a href="https://www.deccanherald.com/tags/bengaluru">Bengaluru</a>’s busy roads like the Outer Ring Road (ORR) by using a FASTag-type concept. The mechanism, it believes, will generate revenues to the fund-starved corporations and also reduce the city’s traffic congestion and pollution. </p><p>The government had constituted a three-member commission headed by former MP Dr C Narayanaswamy to evaluate the sources of revenue and expenditure in each of the city corporations in Bengaluru and recommend to the state government for grant-in-aid to one or more corporations. </p><p>In the 200-page report, the commission has found that the West and North Corporations were not strong financially compared to three other corporations. Among different suggestions to raise funds, the commission has recommended the introduction of congestion charge by making a reference to a similar concept adopted by London in 2003.</p>.Why gridlocked Bengaluru must rethink its streets.<p>“This charge is on a daily basis on vehicles entering a defined zone with fully camera-based enforcement. It is innovative because it is one of the first large-scale urban road pricing systems globally,” the report states, pointing to the London model. “It uses a pricing policy not just to raise money but also to change public behaviour.”</p><p>The commission goes on to state that the congestion fee generates predictable, recurring revenue and the revenue is largely reinvested in public transport and road improvements.</p><p>“It has high potential in Bengaluru City Corporations and can be proposed for Bengaluru’s bus routes.” </p><p>The report has noted that the levy of such a charge must be introduced on roads covered with adequate public transport systems, mostly the Metro. “It is recommended to levy the congestion charges on the ORR and other feasible areas, where adequate public transport is available to the selective type of vehicles which cause congestion,” the commission has noted. </p><p>The recommendations were made after the commission studied the finances of Greater London with “special interest” and explored the innovative strategies for raising revenue and congestion charge was one of them. </p><p>Among the other suggestions include generation and trading of carbon credits on the lines of Indore Carbon Credit Aggregator Model, municipal bonds, entertainment fees and corporate social responsibility (CSR) funds. </p><p>The idea of introducing congestion charge in Bengaluru is not new.</p><p>A similar suggestion was earlier proposed by mobility experts when Chief Secretary Shalini Rajneesh had convened a meeting of different stakeholders last year. In 2014, the government had also commissioned a detailed congestion pricing study for Bengaluru but it remained on paper owing to lack of robust public transport systems. </p>