Ministry of Housing & Urban Affairs Transport Policy Clarification
The Ministry of Housing & Urban Affairs (MoHUA) has clarified that urban planning is a State subject, making respective State Governments responsible for planning, initiating, and developing proposals for urban infrastructure including public transport projects, congestion reduction measures, and urban mobility improvement through digital technologies.
The Central Government has issued policy guidelines including the National Urban Transport Policy 2006 and The Metro Policy 2017 for systematic planning and execution of public transport projects including metro projects, applicable to all regions of India. As of the current date, there is no National Smart Public Transport Scheme specifically for integrated public transport, digital ticketing, non-motorized transport, or last-mile connectivity.
However, the Central Government provides Central Financial Assistance for deployment of e-buses under various Central Schemes (PM e-Bus Sewa, PM e-Drive etc.) and for implementation of Metro projects when proposed by concerned State Governments. Under these interventions, digital ticketing and integrated public transport are priority items.
The National Common Mobility Card (NCMC) operates as an interoperable card with the vision of "One Nation, One Card," functioning seamlessly among different Metro/RRTS and Bus operators. The Ministry has issued directions for implementation of the NCMC ecosystem based on qSPARC (quick Specification for Payment Application of RuPay Chip) developed by National Payments Corporation of India (NPCI). The system is currently functional in 13 Metro projects and 11 Bus Transport corporations, facilitating ease of ticketing through digital technologies and encouraging shift from private vehicles to public transport to reduce traffic congestion.
Additionally, PM-eBus Sewa Guidelines include implementation of NCMC-based Automatic Fare Collection System (AFCS) for bus operations. Under the "Transport Planning and Capacity Building in Urban Transport for metro and non metro projects" sub-scheme of MoHUA, various studies such as preparation of Integrated Mobility Plan, Detailed Project Reports, and Multi Modal integration plans are eligible components for Central Finance Assistance for cities and ULBs, considered based on feasibility of proposals when posed by concerned State Governments.
This information was provided by the Minister of State for Housing & Urban Affairs, Shri Tokhan Sahu, in a written reply in the Lok Sabha on July 30, 2026.