Chapter 9 Funding for Active Mobility:

• (a) The government shall allocate a budget of annually for promoting active mobility in India. Budget will be based on a percentage of budget of the total oil import.
• (b) The funds shall be used for the development of cycling infrastructure, public bicycle-sharing systems, and other initiatives to promote cycling and walking in urban and rural areas.

4.1 Sources of Funding for Active mobility

The Funding for Active Mobility will be approximately around 2%-5% of the amount spent for importing the fossil fuels. Assuming 2% of the amount out of the $100 billion spent in importing oil - approximately 2% will be spent to enabling Active Mobility - Rs.15,000 crores.

15,000 crores annually to be allocated for Active Mobility:

• (a) ABC Cess - 30%. ( approx 3000 crores)
• (b) Congestion Charges/Traffic Penalties - 10%. ( approx 1000 crores) - To be used for building infra for active mobility in Cities.
• (c) Climate Change Funds from India - 30%. ( approx 3000 crores)
• (c) Climate Change Funds from World Bank, ADB and other international sources - 30% .( approx 3000 crores) - to be used for building the Velo Asia Network across Asia.

ABC Cess

To achieve the goal of promoting active mobility and making India self-reliant, the government has decided to introduce a cess on various carbon emitting products and services. The proposed cess will be levied on cars, air tickets, tolls, and oil retailers in cities to discourage the use of carbon-emitting modes of transportation and encourage people to switch to active mobility. The following section describes the proposed cess rates and its impact on different industries and stakeholders.

Cess on Cars

A cess of 1% will be introduced on the cost of cars purchased in India. This cess will be applicable to all types of cars, including petrol, diesel, and hybrid cars. The revenue generated from this cess will be used to promote active mobility and develop infrastructure for non-motorized transportation, such as cycle lanes and pedestrian walkways.

The introduction of this cess is expected to discourage people from purchasing cars and encourage them to use bicycles and public transportation. This, in turn, will help reduce carbon emissions and promote a healthier lifestyle.

Cess on Air Tickets

A cess of 5% will be levied on air tickets sold in India. This cess will be applicable to both domestic and international air travel. The revenue generated from this cess will be used to develop infrastructure for non-motorized transportation and promote active mobility.

The introduction of this cess is expected to discourage people from taking flights for short distances and encourage them to use alternative modes of transportation, such as bicycles and trains. This, in turn, will help reduce carbon emissions and promote sustainable tourism.

Cess on Toll

A cess of 5% will be introduced on tolls collected at national and state highways in India. This cess will be applicable to all types of vehicles, including cars, buses, and trucks. The revenue generated from this cess will be used to develop infrastructure for non-motorized transportation and promote active mobility.

The introduction of this cess is expected to discourage people from using personal vehicles for long-distance travel and encourage them to use public transportation and bicycles. This, in turn, will help reduce carbon emissions and promote sustainable transportation.

Cess on Oil Retailers in Cities

A cess of 0.5% will be levied on the sale of petrol and diesel in cities in India. This cess will be applicable to all oil retailers, including public and private sector companies. The revenue generated from this cess will be used to develop infrastructure for non-motorized transportation and promote active mobility.

The introduction of this cess is expected to discourage people from using personal vehicles for short-distance travel and encourage them to use bicycles and public transportation. This, in turn, will help reduce carbon emissions and promote sustainable transportation.

Conclusion

The introduction of cess on various carbon emitting products and services is a step towards promoting active mobility and making India self-reliant. The revenue generated from this cess will be used to develop infrastructure for non-motorized transportation and promote sustainable transportation. The proposed cess rates are expected to discourage people from using carbon-emitting modes of transportation and encourage them to switch to active mobility, which will have a positive impact on the environment and public health.

Congestion Charges

To promote active mobility and make India self-reliant, the government has decided to introduce congestion charges in major cities of India. The proposed congestion charges will be levied on vehicles entering congested areas in cities during peak hours. The revenue generated from this charge will be used to develop infrastructure for non-motorized transportation, such as cycle lanes and pedestrian walkways.

The following section describes the proposed congestion charge and its impact on different industries and stakeholders.

Congestion Charge in Cities

A congestion charge will be introduced in major cities of India, including Mumbai, Delhi, Bangalore, Chennai, and Kolkata. The charge will be applicable during peak hours, which will be determined by the local authorities based on traffic congestion levels. Vehicles entering congested areas during peak hours will have to pay a charge to access those areas.

The revenue generated from this congestion charge will be used to develop infrastructure for non-motorized transportation, such as cycle lanes and pedestrian walkways. This, in turn, will help promote active mobility and reduce traffic congestion.

Budget

The following are the key budgetary components of the plan. The resources required for the plan should include skilled personnel, including urban planners and engineers, as well as funding and support from the government and other stakeholders. The success of the plan will also depend on the active participation and engagement of local communities and stakeholders, including cycling advocacy groups and other organizations that support cycling as a mode of transportation.

Infrastructure development:

A significant portion of the budget should be allocated to the development of cycling infrastructure, including cycle tracks, segregated lanes, cycle parking facilities, and other infrastructure.

Integration with other modes of transportation:

A portion of the budget should be allocated to the integration of cycling with other modes of transportation, including public transport.

Bicycle logistics:

A portion of the budget should be allocated to the promotion of cycling for logistics and delivery, including the development of cargo bikes and other cycling-based logistics solutions.

Bicycle tourism:

A portion of the budget should be allocated to the promotion of cycling-based tourism, including the development of cycling routes, cycling-friendly accommodation, and other infrastructure and services.

Bicycle for health:

A portion of the budget should be allocated to the promotion of cycling for public health, including the development of initiatives that encourage cycling for exercise and the promotion of cycling as a means of reducing air pollution.