The Impact Of Public Transport On Rural And Sustainable Development

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4. Financial Analysis
4.1 Introduction
Today the role of public transport is perceived very seriously in terms of urban mobility and sustainable development, but even though the financial resources available are insufficient. Acquiring appropriate financing mechanisms is not only imperative for the development of transport system but also for the holistic growth of urban pockets.
The local government all over the world face financial constraints due to disparity between costs and revenues. Many urban planners think that revenues cannot be covered from fare box alone. Indian cities are also facing the same challenges. But due to some funding through JnNURM the city officials find some relief in procuring buses of high standards like present in developed countries.
There are two types of costs associated with transport system: one is capital cost and other is operating cost. Capital cost constitutes of infrastructural support, procurement of buses, and construction of bus stations. Whereas operating cost includes expenses incurred in fuel, technological services, salaries to operators of buses, and upgrading buses to better quality with time. Hence financial aspect takes a big role, because without investment of money, a huge infrastructural project is not possible. Other dilemma which urban planners face is setting correct fares in order to attract maximum users and save the system to run into losses.
In this section of my case study, I focus upon the financial burden of
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