While petroleum based fuels are by far the most commonly used today, other alternatives have been emerging, though slowly. CNG has been adopted in a big way for bus transport in Delhi. Electric trolley buses are also being proposed in the city. Electric vehicles have already entered the market for cars and auto rickshaws. Electric two wheelers are also under development. Such cleaner technologies need to be encouraged so that the problem of vehicular pollution can be more effectively dealt with. Besides, renewable sources need to be tapped as a measure of sustainable development and in recognition of India's energy security concerns. The Central Government would, therefore, encourage the research, development and commercialization of cleaner technologies. 48. New technologies always find it difficult to enter an established market and new auto fuel technologies would also face this problem. However, in view of their many advantages, they would be offered suitable concessions and benefits that would enable them to make an entry and compete with established technologies on more equitable terms. It is expected that such competition will also encourage established technologies to improve their performance characteristics and compete with the emerging choices.

Several vehicles on our roads tend to be poorly maintained and are overly polluting. This is partly because the requirements of proper maintenance are not stringent and are largely driven only by the owner's motivation to save on fuel cost. Even where such motivation exists, the lack of a widespread network of good quality repair facilities discourages them for the exertion of having their vehicles periodically tested.

In order to overcome these problems, the Central Government would, lay down a clear and time bound schedule of progressively tighter emission norms, with adequate lead-time, to allow the auto and oil industry to make the required investments. Measures would also be introduced to incentivize the use of fuel efficient (zero pollution) and small sized vehicles that use up little road space and also cause low pollution. Statutory provisions would also be introduced requiring all in-use vehicles in a city, including personal motor vehicles, to undergo a periodic check up and obtain a specified certification. States would be encouraged to set up such certification facilities, in partnership with the private sector. The Central Government would also support the establishment of training centers for the staff of such certification establishments so that there are adequate skilled personnel, both for certification and for undertaking the required repairs. All of these would require that an effective regulatory body be set up to prescribe, monitor and enforce the adherence of emission and safety standards.

It is evident that huge capital investments will be required in dealing with the urban transport problems. Whether they are for constructing capital intensive mass transit systems or segregated rights-of-way for cycles and pedestrians, a substantial financial burden would devolve on the government. Most State governments and local bodies do not have the required resources and, therefore, alternative methods of financing would have to be explored.

The Central Government would encourage the levy of dedicated taxes to be credited to an urban transport fund and used exclusively to meet urban transport needs within the State. Such dedicated taxes could be in the form of a supplement to the petrol and diesel taxes, betterment levy on land owners or even an employment tax on employers. In fact, revenues from a betterment levy along new high capacity public transport corridors would be included as a component of the financing plan for such new public transport systems.

There are several activities in which the private sector can be beneficially engaged, thereby saving financial resources for activities that only public agencies can best perform. However, these have to be done under conditions that strike a fair balance between the universal obligations of the government and the profit motive of the private operator. Accordingly, the Central Government would encourage a more liberal use of the private sector, especially in activities like the operation and maintenance of parking facilities, certification facilities, repair facilities, construction and management of terminal facilities, etc. Till the mid 1980s most public transport services were largely provided by publicly owned State Transport Corporations. Since then, however, some States have permitted privately run services. While public operations have tended to be high cost and most State Transport Corporations have run up heavy losses, the reliability and safety record of inadequately regulated private operators has been poor. On balance, the Central Government would encourage the State Governments to involve the private sector in providing public transport services, but under well structured procurement contracts.