fy2018 study on business opportunity of high-quality
TRANSCRIPT
FY2018
Study on business opportunity of High-quality Infrastructure to Overseas
Feasibility Study of Common Mobility Card Business in Gujarat, India
February, 2019
Ministry of Economy, Trade and Industry (METI)
Entrustee:
NEC Corporation
1. Project overview
1-1. Background and objective
1-2. Target area of the study
1-3. Methodology of the study
1-4. Project structure
2. Results of the project
2-1. Local needs and issues towards Common Mobility Card expansion
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
2-1-2. Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion
2-1-3. Survey for trends of local players which provide transportation IC card payment service
2-1-4. Survey for trends of introduction status for payment service besides transportation use
2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI
2-2. Business feasibility
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
2-2-2. Examination of issue and solution related to localization of proposed technology for making business model
2-2-3. Examination of strategic issues and countermeasures
2-2-4 Business model development and its elaboration
2-3. Implementation of reporting seminar
2-3-1. Reporting seminar in Gujarat
Table of contents
1. Project overview
1-1. Background and objective
1-2. Target area of the study
1-3. Methodology of the study
1-4. Project structure
2. Results of the project
2-1. Local needs and issues towards Common Mobility Card expansion
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
2-1-2. Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion
2-1-3. Survey for trends of local players which provide transportation IC card payment service
2-1-4. Survey for trends of introduction status for payment service besides transportation use
2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI
2-2. Business feasibility
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
2-2-2. Examination of issue and solution related to localization of proposed technology for making business model
2-2-3. Examination of strategic issues and countermeasures
2-2-4 Business model development and its elaboration
2-3. Implementation of reporting seminar
2-3-1. Reporting seminar in Gujarat
Table of contents
4
1-1. Background and objective
▌ In India, the concept of “National Common Mobility Card” exists as the country promotes cashless, and smart city. However, each city is implementing different technologies due to lack of national standard.
▌ As an ICT solution provider for 2 major cities in Gujarat (Ahmedabad and Surat), NEC conducted this Feasibility Study of Common Mobility Card Business in Gujarat, India.
Background and objective (Excerpted and translated from NEC’s specification sheet):
In Republic of India, soon after the launch of the present government of Narendra Modi in May, 2014, “Digital India Program” has been formulated as national policy. In this program, the government aim to promote the digitalization of financial deals and cashless system. As a fact, the government has suddenly abolished high-value banknote to eliminate the corruption in November, 2016 for example, to realize the cashless society establishment with diffusion of Fin Tech.
According to the above national policy, Ministry of Housings and Urban Affairs (MoHUA) as main role has formulated “Smart Cities Mission Statement & Guidelines” in June, 2015. This, as one of the most important policy of the government, aims to transform 100 target cities to Smart City by utilizing ICT (Pan City Development). As of now, around 90 cities have been selected and 11 of them listed “Common Card” as the expected smart solution to be introduced (Round1: 7 cities, Fast Track: 1 city, Round2: 3 cities). Among them, Ahmedabad and Surat cities have been selected as smart city which will be the main target site of this feasibility study already implemented the contactless smart card based on RuPay (Rupee Payment) specification formulated by National Payments Corporation of India (NPCI). In Ahmedabad, his RuPay based smart card is already available for transportation use like Bus/BRT, and the integration with Metro Express for Gandhinagar - Ahmedabad (MEGA) is being reviewed.
Despite the situation with such grand idea, NPCI and MoHUA who have been formulating “National Common Mobility Card -Submission of Minimum Standards” (inaugurated in 2009, NCMC) don’t establish the practical and unified technical specification for transportation use in the card data format yet even after 8-9 years passed after the policy issued. As a result, each state, city government and transport operator is implementing smart card system individually, which consumes time and cost than required. Furthermore, by introducing transport smart card with several specifications, it becomes difficult to realize seamless transfer among multiple transportation modes (Interoperability).
On the other hand, Feasibility Study for Infrastructure Provision in Smart City Development in Gujarat state conducted under Ministry of Economics, Technologies and Industries in 2017 implied the possibility to utilize Japanese technology for transport smart card in the final report.
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1-1. Background and objective
National Common Mobility Card (NCMC)
▌ National Common Mobility Card (NCMC) is the concept Government of India is driving forward.
▌ NCMC is a contactless payment card which enables nation-wide interoperability.
Card-based payment Applicable both for online payment (contact & contactless), and offline payment (contactless) Capable to have stored value for offline transaction Available not only for bus, metro, parking, and toll gates with contactless payment function, but
also for ATM, retail stores, and e-commerce. Issuer of NCMC has to be a member of Reserve Bank of India NCMC can be issued as debit card, prepaid card, and credit card. Can host various services such as commuter pass and seasonal ticket
Major features of NCMC:
P
Card IssuingBank
NCMC
AcquiringBankToll gate
Bus・BRT
Metro
Parking
Retail store
NPCI National Automated Clearing House (NACH)Settlement between Card Issuing Bank & Acquiring Bank
Transaction requestCard usage
Transaction data from Acquiring Bank
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1-2. Target area of the study
▌ This study sets Gujarat State (Ahmedabad and Surat) as a major focus, as NEC have implemented NCMC compliant cards for both cities. Discussion among the central government agencies, other states, and related stakeholders will also be the scope of this study.
Gujarat State
Major target area of the study:Gujarat State
Population: 60.38M (9th largest in India, in 2011) • Ahmedabad (5.6M 5th largest), Surat (4.46M 8th largest)
In 2028, its population will reach 71.2M according to 2011 Census of India Major public transportations:
• Intercity: Western Railway (Central government operation), Intercity bus (State operation)
• Ahmedabad: Bus / BRT / Metro (Under Construction)• Surat: Bus / BRT / Metro (Planning) / High Mobility Corridor (Planning)• Rajkot: Bus / BRT• Vadodara: Bus / BRT (Planning)
High Speed Railway is planned to start its operation in 2023Manufacturing industry sector in Gujarat makes up 40.6% of 2019’s national GDP Current Prime Minister, Narendra Modi served as the state’s Chief Minister
from 2001 to 2014
Ahmedabad
Surat
VadodaraRajkot
Gandhinagar
High Speed Railway
Target areas of study outside Gujarat State
Discussion among the central government agencies.
Implementation status of smart cards in other state.
Trend of related stakeholders such as banks and IT solution providers.
Cashless trend other than smart cards.
JanmitraCard
SuratMoneyCard
*1
*2
*1 Source: MoHUA SMARTNET「COMMON CARD PAYMENT SYSTEM A step towards green travel」*2 Source: Surat Municipal Corporation Web Page
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▌ Reflecting each layer’s (Central / State / City / Private) opinions and activities, NEC made a proposal to the key stakeholders in Gujarat.
Business model development(Oct - Jan)
Final report(Jan - Feb)
Study local needs and issues towards Common Mobility Card expansion
(Aug - Dec)
1-3. Methodology of the study
1st visiton-site survey
2nd visiton-site survey
3rd visiton-site survey
4th visiton-site survey
5th visitFinal Reporting Seminar (India)
Central Govt.Hearing survey on NCMC discussion status as well as implementation schedule for key stakeholders.
GJ State Govt.Hearing survey on GJ State’s plan for adopting NCMC, and which department will be in charge.
City Govt.Hearing survey on Ahmedabad’s and Surat’s NCMC implementation status, and adaptation plan.
Private StakeholdersHearing survey on NCMC for stakeholders such as banks and IT solution providers.
Report to METI(Japan)
9/2~9/15 9/25~10/12 10/28~11/3 12/9~12/22 1/20~2/3
GJ State Govt.City Govt.Make a proposal at the reporting event in the presence of key stakeholders from State govt. , Ahmedabad and Surat.
Receive Supporting Letter from GJ State and Surat
Report from the domestic subcontractor Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat stateExamination on potential utilization of big data, accumulated through transportation common card
business, with AI
Report from the on-site subcontractorSurvey for transportation IC cards in other states, Indian Railways (IR) and National High Speed
Railway Corporation Limited (NHSRCL) which would be candidate for business expansionSurvey for trends of local players which provides transportation IC card payment serviceSurvey for trends of introduction status for payment service besides transportation use
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On-siteactivities
Outsourcingactivities
GJ State Govt.Collect feedbacks for the proposed technology, and discuss business feasibility.
Academic InstituteDiscuss the possibility of collaborative research and proof of concepts.
GJ State Govt.Brief direction ofthe proposal and officially invite for the Final Reporting Seminar.
Central Govt.Brief direction ofthe proposal and officially invite for the Final Reporting Seminar.
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1-4. Project structure
▌ This project is led by NEC Corporation, in cooperation with ABeam Consulting Ltd. and NEC Technologies India Pvt. Ltd. as subcontractors.
Ministry of Economy, Trade and Industry (METI)
NEC Corporation Project Management Implementation of on-site survey on transportation IC card in Ahmedabad and Surat Business model development Reporting of the study result Proposal to Gujarat State Government at the local reporting seminar
ABeam Consulting Ltd. Study and analysis of policies, laws, and
challenges etc.
NEC Technologies India Pvt. Ltd. Expansion of the survey to other states and
cities Hosting the local reporting seminar etc.
Entruster
Entrustee
SubcontractorSubcontractor
1. Project overview
1-1. Background and objective
1-2. Target area of the study
1-3. Methodology of the study
1-4. Project structure
2. Results of the project
2-1. Local needs and issues towards Common Mobility Card expansion
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
2-1-2. Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion
2-1-3. Survey for trends of local players which provide transportation IC card payment service
2-1-4. Survey for trends of introduction status for payment service besides transportation use
2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI
2-2. Business feasibility
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
2-2-2. Examination of issue and solution related to localization of proposed technology for making business model
2-2-3. Examination of strategic issues and countermeasures
2-2-4 Business model development and its elaboration
2-3. Implementation of reporting seminar
2-3-1. Reporting seminar in Gujarat
Table of contents
10
Profile *1 Prospect *2
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Gujarat State: Overview
Gujarat State Demographic *1
Population: 60.38 million(2011)*9th largest state in India
Municipal Area:196,024km2
Population Density:310 persons/km2
Foundation: May 1st 1960
State Capital: Gandhinagar
Largent City: Ahmedabad
Governor: Shri O. P. Kohli (from July 2014)
Chief Minister: Dr. Vijay Rupani (from August 2016)
Language: Gujarati, English, Hindi, others
literacy rate: 79.31%(Country: 74.04%, National census 2011)
Religion: Hinduism (89.1%), Islam(9.1%), Jainism(1.0%), Sikhism(0.1%), Christianity(0.5%)
Main Cities:Ahmedabad, Vadodara, Surat, Rajkot, Bhuj, Junagadh,Jamnagar
Economy and Industry: The state ‘s gross output for 2009 is Rs. 4,293 billion, accounting for 7% of the total Indian GDP. Its annual growth rate from 2004 to 2009 was 10%, exceeding the domestic average of 9%. Its annual income per capita in 2009 was Rs. 63,961, compared with the domestic average of Rs. 46,492. In 2009, the state contributes to 15% of the national industrial production and 21% of the export, and contribution of the manufacturing industry to GDP was 40.6%.
Population Trends
According to the national census in 2011, the population is projected to reach 71.2 million by 2028, representing 20.7% increase from 2011
In case of higher projection (2.8% annual increase), the population is expected to reach 73.2 million by 2028, showing 24.1% increase from 2011. In case of lower projection (0.7% annual increase), the population is expected to reach 70.7 million by 2028, showing 19.8% increase from 2011.
Factory Increase Trends
In 2014/15, Gujarat State had 17,884 registered factories, exceeding NCR region (Delhi, Haryana, and Rajasthan) which all together had 17,594 registered factories.
Comparing 2005/06 to 2014/15, number of factories registered in Gujarat increased by 27.4%. The projection scenario based on NCR past data depicts 37.8% increase in from 2014/15 to 2027/28.
Employment Increase Trends
In 2014/15, number of people engaged in factories in Gujarat State was approx.1.4 million exceeding NCR region which all together had approx.1.3 million.
Comparing 2005/06 to 2014/15, number of person engaged in factories in Gujarat increased by 64.8%. The projection scenario depicts 48.5% increase in next 13 years.
*1: Source: JETRO (https://www.jetro.go.jp/world/asia/in/regional.html)*2: Source: Mizuho Bank (http://www.meti.go.jp/meti_lib/report/H29FY/000034.pdf)
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Inter-State
Indian Railways(Western Railways)
National High Speed Rail Corporation Limited (Planned)
Gujarat State Road Transport Corporation
State
Gujarat Metro Rail Corporation
City
Ahmedabad BRTS
Ahmedabad City Bus
Surat BRTS
Surat City Bus
Surat Metro (Planned)
Surat High Mobility Corridor(Planned)
Railway connecting the states of Maharashtra, Madhya Pradesh, Rajasthan, and mainly in Gujarat.
Length: 6,448.64km
High-speed railway connecting 12 major stations of Gujarat and Maharashtra States such as Mumbai, Surat, Vadodara, Ahmedabad.
Length: 508.17km
Bus service connecting neighboring states, mainly in Gujarat state. 7,467 Vehicles
Urban railway service connecting Gandhinagar and Ahmedabad.
Length: 39.259km
Municipal BRTS operated by an entity under Ahmedabad city.
250 vehicles
Municipal city bus operated by an entity under Ahmedabad city.
977 vehicles
Municipal BRTS operated by a private company under Surat city.
116 vehicles (planned)
Municipal city bus operated by a private company under Surat city.
875 vehicles
Metro planned to start operation in 2023.
Length: 40km, 38 stations
24 hour bus service by a private company under Surat city.
34 vehicles, 22 stations
4.4 million
18,000(One Way)
2.2 million
660,000(Expected)
350,000
600,000
40,000~45,000
40,000
N/A
N/A
▌ There are intercity transportations as well as intra-city transportations.
▌ Ahmedabad Metro is under construction. Surat Metro and inter-state High Speed Railway are planned to be operated.
Overview Daily Ridership
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Gujarat State: Public Transportation
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Profile Background
Demographic of Ahmedabad
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Ahmedabad City: Overview
Population: 5.6 million(2011)*5th largest city in India
*1st largest city in Gujarat State
Municipal Area:464km2
Population Density:12,000 persons/km2
Government: Municipality was founded in 1873, upgraded to Ahmedabad Municipal Corporation (AMC) in 1950
Mayor: Bijalben Patel (Bharatiya Janata Party)
Population Trends: Expected to be 7.74 million in 2025 (according to the report by UN-HABITAT)
Number of registered vehicles: Increased from 1.29 million in 2002 to 3.36 million in 2014 *1
Other: It has "Sardar Vallabhbhai Patel International Airport" which is named after the first Deputy Minister of India, and direct flights to various parts of India, the Middle East, Singapore, etc. are operated.
Growth of the City
Even after the state capital was transferred from Ahmedabad to Gandhinagar in 1970, it developed as a center of economic activity. It is the largest city in Gujarat and there were 220 Japanese companies (as of January 2015).
In 2010, "Forbes" list of the world's fastest growing cities included Ahmedabad at number 3 after Chengdu and Chongqing from China.
Since it is also the terminal station of Indian high-speed railway (MEGA) scheduled to open in 2019, further growth is expected in the future.
Issues
With the urbanization by economic growth, the population and the number of automobiles rapidly increase. Traffic jams become more serious, and it causes more economic losses. Additionally, serious air pollution is also problems.
To alleviate traffic congestion and to improve the urban environment through the reduction of traffic pollution, JICA‘s loan assistance ”Ahmedabad Metro Project (1)” (about 82.4 billion Japanese Yen) is now implemented (Loan Agreement was signed in March 2016) .Source: UN-HABITAT “State of the World's Cities 2010/2011”
*1 Source: JICA (https://www2.jica.go.jp/ja/evaluation/pdf/2015_ID-P247_1_s.pdf)
(Unit: million Persons)
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▌ Gujarat Metro Rail Corporation aims to provide safe, inexpensive, environmentally friendly public transportation services to citizens, connecting with other public transportation such as bus, BRTS, railway etc. 11 stations (out of 32 stations in total) may have interconnection.
Operator:Gujarat Metro Rail Corporation Ltd.
Overview:Urban railway service connecting the Gandhinagar capital city and Ahmedabad run by a special purpose vehicle (SPV) jointly owned by the Indian central government and the Gujarat state government. This is a JICA‘s loan assistance project. (about 82.4 billion Japanese Yen)
Route length: 39.259km(Phase1) No. of stations: 32 Stations Ridership per day: 660,000*1
(Expected in 2021) Operation: scheduled in 2019
Smart Card: to be implemented.by Nippon Signal Co., Ltd. Details are expected to be decided soon. According to the tender document, It is conditioned that Janmitra Card is available.
Metro
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Ahmedabad City: Public Transportation (Metro)
Source: MEGA ”Route Map” (http://www.gujaratmetrorail.com/route-map-2/)
*1 JICA (https://libportal.jica.go.jp/library/Data/DocforEnvironment/EIA-EPC/EastAsia-SouthwesternAsian/indiaAMRP/EIAReport.pdf)
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Source:Ahmedabad Janmarg Ltd
▌ BRTS operation began in 2009 and it gained great success as citizen’s daily transportation. Since the success of BRTS in Ahmedabad has been considered as a model case for all India. Many missions have visited Ahmedabad from India as well as overseas *1.
Operator:Ahmedabad Janmarg Limited(AJL)
Overview:Municipal BRTS operated by an entity under Ahmedabad city (AMC).
Route length: 97 km No. of stations: 157 stations No. of vehicles: 250 vehicles Ridership per day: 350,000 Operation: from October, 2009
Smart Card:Janmitra Card has been introduced and AFCS is delivered by NEC (as a part of "Intelligent Transport Operation Management System" awarded by AMC including AFC, Bus position information management system, Passenger information provision system, vehicle operation planning system and sales office management system)
BRTS
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Ahmedabad City: Public Transportation (BRTS)
*1: Source: JICA (http://open_jicareport.jica.go.jp/pdf/12234266_01.pdf)
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Source:CEPT University「Bus Rapid Transit System, Ahmedabad」(http://www.gidb.org/pdf/bRTSchapter46.pdf)
▌ Ahmedabad Municipal Transport Service (AMTS), which began in 1947, is the first public bus service for citizens. It has played an important role in suburban and neighboring village development.
Operator:Ahmedabad Municipal Transport Service(AMTS)
Overview:Municipal city bus operated by an entity under Ahmedabad city (AMC).
No. of Routes: 166 routes No. of vehicles: 977 vehicles Ridership per day: 600,000 Operation: from April, 1947
Smart Card:Janmitra Card has been introduced and AFCS is delivered by NEC (as a part of "Intelligent Transport Operation Management System" awarded by AMC including AFC, Bus position information management system, Passenger information provision system, vehicle operation planning system and sales office management system)
City Bus
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Ahmedabad City: Public Transportation (City Bus)
16
Profile Background
Demographic of Surat
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Surat City: Overview
Population: 4.46 million(2011)*8th largest city in India
*2st largest city in Gujarat State
Municipal Area:326.5km2
Population Density:14,000 persons/km2
Government: Municipality was founded in 1852, upgraded to Surat Municipal Corporation (SMC) in 1966
Mayor: Jagdish Patel (Bharatiya Janata Party)
Population Trends: Expected to be 5.70 million in 2025 (according to the report by UN-HABITAT)
Number of registered vehicles: 2.20 million *1
Other: While SMC has the authority on the budget and investment execution related to urban road construction, the police authority also takes the initiative to realize investment in the traffic management system by inviting donations from the private sector *1.
Growth of the City *1
Surat is expected to achieve high economic growth. For example, according to City Mayors Foundation’s research, Surat is ranked 4th among the urban areas in the world by the economic growth rate forecast from 2006 to 2020.
It is known as the center of diamond business (42% of polishing and processing, 40% of export of the world‘s natural diamonds being done in Surat). It is also the center of the textile industry (40% of Indian man-made fabrics and 28% of fibers in India are produced in Surat).
In the suburb, “Hazira” industrial area is developed as SEZ (Special Economic Zone) and the port is also upgraded in order to invite foreign investment. Japanese companies enter there, for example, Mitsubishi Heavy Industries, Ltd. Established its boiler and turbine generator factories (joint ventures with L&T).
Issues
In response to the rapid economic development and the increase in traffic volume, the traffic congestion becomes serious issues though Surat has been actively investing in road infrastructure to accommodate rapidly increasing traffic.
(Unit: million Persons)
Source: UN-HABITAT “State of the World's Cities 2010/2011”
*1: Source: JICA (http://open_jicareport.jica.go.jp/pdf/12234266_02.pdf)
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▌ Surat is the third city to introduce BRTS (the second is Indore city) following the BRTS success model of Ahmedabad. Surat is the first city to run AC-Midi bus instead of the standard bus *1.
*1 Traffic Infra Tech Magazine 「Surat: Smart City in the making」(https://www.trafficinfratech.com/surat-smart-city-in-the-making/)
Operator: Sitilink
Overview:Municipal BRTS operated by a private company under Surat city.
No. of route: 6 routes
Route length: 102 km (Planned)
No. of stations: 184 stations (Planned)
No. of vehicles: 116 vehicles (Planned)
Ridership per day: 40,000-45,000
Operation: from January, 2014
Smart Card: Surat Money Card has been introduced and AFCS is delivered by NEC.
BRTS
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Surat City: Public Transportation (BRTS)
Source: JICA (http://open_jicareport.jica.go.jp/pdf/12234266_02.pdf)
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▌ As of November 2016, the number of users was limited up to 3,000 people/day, but as a result of improving services by introducing the latest ICT system and strengthening competitiveness at low price, the number of users reached 65,000/Day as of August 2017 *1
Operator: Sitilink
Overview: Municipal City bus serivce by a private company under SMC. It promotes modal shift from auto-Rickshaw to city bus *1
No. of routes: 44 routes (Planned)
Route length: 515km (Planned)
No. of stations: 690 stations (Planned)
No. of vehicles: 875 vehicles (Planned)
Ridership per day: 40,000
Operation: from January, 2014
Smart Card: Surat Money Card has been introduced and AFCS is delivered by NEC
City Bus
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Surat City: Public Transportation (City Bus)
Source: Integrated Mass Transit System An Initiative of Surat Municipal Corporation
*1: Source: The Times of India ”How Surat got people to ditch autorickshaw rides, opt for buses” (https://timesofindia.indiatimes.com/city/delhi/how-surat-got-people-to-ditch-autorickshaw-rides-opt-for-buses/articleshow/61611309.cms)
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▌ The construction plan of Metro in Surat City is expected to be started in the first quarter of 2019 after approval by the central government. Donors such as the Asian Infrastructure Investment Bank (AIIB), World Bank and JICA, may have interest to support it *1.
Operator:To be decided, but there is a possibility GMRCL (Operator for Ahmedabad Metro) may become the operator *1, while four elevated stations will be built by SMC with private partners *2)
Overview:In January 2017, Gujarat State Government approved the construction of the two corridors, waiting for approval by the Central Government of India (assumed to start the project in early 2019)
Route length: 40km (Planned)
No. of stations: 38 stations (Planned)
Operation: scheduled in 2023
Smart Card: To be decided
Metro
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Surat City: Public Transportation (Metro)
*1: Source: Metro Rail News (https://www.metrorailnews.in/surat-metro-metro-rail-work-diamond-city-launched-2019/)*2: Source: The Times of India (https://timesofindia.indiatimes.com/city/surat/revised-dpr-for-surat-metro-rail-project-to-be-approved-this-month-endsoon/articleshow/64101245.cms)
Possible alignment of Surat Metro’s Line-1 & Line-2Source: The Metro Rail Guy ”Gujarat Government Finalizes Surat Metro’s Routes”
(https://themetrorailguy.com/2017/01/14/gujarat-government-finalizes-surat-metros-routes/)
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*1 Integrated Mass Transit System An Initiative of Surat Municipal Corporation (http://urbanmobilityindia.in/Upload/Conference/d4b4e263-2e5f-4cc3-94eb-cf88d145808a.pdf)
▌ Construction of HMC (High Mobility Corridor) is planned with Surat City's own fund for the purpose of streamlining the economic activities concentrated in the center of Surat *1
Operator:To be decided. (Expected to be constructed with Surat City's own fund)
Overview:24 hours Urban bus service. The fare will be from Rs.2 to Rs.5. It is said that 15% to 20% of the city population, 26 to 30% of the city's employment, and 8 to 10% of city GDP are concentrated in the center of Surat city, which is equal to 5% of the city area.
Route Length: 40Km
No. of stations: 22 stations
No. of vehicles: 34 vehicles
Operation: scheduled in 2018
Smart Card: TBD
HMC
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Surat City: Public Transportation (High Mobility Corridor)
Source: Integrated Mass Transit System An Initiative of Surat Municipal Corporation
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▌ NCMC compliant cards implemented in Ahmedabad/Surat for City Bus/BRTs. However, both cities are struggling to grow the number of smart card users.
▌ Metro in Ahmedabad was originally planning to introduce their own card as well as accepting Janmitra card. However, now reconsidering their action in order to be in line with central government’s NCMC plan.
Ahmedabad Surat Vadodara Rajkot
Bus/BRT Bus/BRT Bus (BRT planning) Bus/BRT
Metro Metro(Planning)
Indian Railways (Western Railways)
Inter-city Bus
Parking Parking Parking Parking
Auto rickshaw Auto rickshaw Auto rickshaw Auto rickshaw
NCMC compliant card PTO specific card which can be used only within the issuing transportation authority
220,000 1,100
Yet, still have many passenger buying paper tickets
High Speed Railway(Planning)
JanmitraCard
Surat MoneyCard
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Gujarat State: Smart card implementation status
22
▌ Janmitra card is a transportation IC card in Ahmedabad, which is NCMC compliant. It is issued by ICICI Bank, a contract winner of Ahmedabad Municipal Corporation.
▌ As of January 2019, approximately 220,000 cards were issued*1.
Janmitra Card *2
Card Types【Non-personalised card】 On-Spot cards Tourist Cards
【 Personalised card 】 Standard cards Child/Youth Cards Senior Cards Concession Cards
Services provided by Janmitra Cards Cashless bus travel in Ahmedabad Buying tickets and store passes for BRTS and AMTS Payment of AMC Professional Tax and AMC Property
Tax Payment of Kankaria Lake entry and Sabarmati
Riverfront entry Shopping mall payments, at restaurants, other
digital payments Payments for AMC run parking
Card Fees Issuance fees for non-
personalised card: Rs.50 Issuance fees for personalised
card: Rs.75 Replacement fees: Rs.50 (for
non-personalised card), Rs.75 (for personalised card)
Maximum stored balance:Rs.10,000
Janmitra Card corresponding to the open loop (which is NCMC standard) started to be issued on October 16, 2017 as a co-brand of Ahmedabad Municipal Corporation (AMC) and ICICI Bank.
Janmitra Card materialises Cashless, Touch & Go in the city transportation of BRTS and City Bus.
BRTS boarding fare discount is offered; Cardholders get 10% discount, Student/Disabled person get 40% discount, Janmitra user has free 2 Mbps Wi-Fi service at BRTS stations.
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Ahmedabad City: Smart Card (Janmitra Card)
*1 Information from hearing with stakeholders *2 Source: MoHUA SMARTNET「COMMON CARD PAYMENT SYSTEM A step towards green travel」
23
▌ Surat Money Card is a transportation IC card in Surat, which is NCMC compliant. It is issued by ICICI Bank, a contract winner of Surat Municipal Corporation.
▌ As of January 2019, approximately 1,100 cards were issued in advance of the full scale operation and more 10,000~20,000 cards are expected to be issued soon for public civil-service workers *1.
Surat Money Card *2
Services provided by Surat Money Card Cashless bus travel in Surat Buying tickets and store passes for BRTS and City
Bus Payment of SMC Professional Tax, Property Tax,
Water bill, ect. Payment in retail environment Expected to be used for library, swimming pool, park,
parking, etc. in near future
Card Fees Issuance fees: free for
issuance (But, at least Rs. 100 is required for the first Top-up)
Replacement fees: Rs.50 (for non-personalised card), Rs.75 (for personalised card)
Maximum stored balance:Rs.10,000
Surat Money Card corresponding to the open loop (which is NCMC standard) started to be issued in May 2018 as a co-brand of Surat Municipal Corporation (SMC) and ICICI Bank.
Surat Money Card materialises Cashless, Touch & Go in the city transportation of BRTS and City Bus.(Usage for City Bus is under testing as of February 2019)
Card Types【Non-personalised card】 On-Spot cards Tourist Cards
【Personalised card】 Standard cards Child/Youth Cards Senior Cards Concession Cards
Personalised card holders can benefit from various discounts such as discount for property tax.
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Surat City: Smart Card (Surat Money Card)
*1 Information from hearing with stakeholders *2 Source: from SMC website
24
▌ Commercially, cities in Gujarat have exclusive contracts with their partnering banks for smart card issuance. This prevents other smart cards to be used in the city.
▌ Technically, common data format has to be formed to achieve interoperability among different cities. (Gujarat is a special case for having a common data format among cities since both Ahmedabad and Surat cards are implemented by ICICI Bank and NEC)
Gujarat State
Common Area(ex. Balance Information)
…
Common Area(ex. Balance Information)
…
Data required for fare calculation are stored in each Public Transportation Operator (PTO) specific area, and it prevents interoperability among different PTOs. MoHUA, C-DAC(Centre for Development of Advanced Computing) and NPCI(National Payments Corporation of India) are discussing to introduce improved common formatfor transportation sector.
Common Area(ex. Balance Information)
…
Janmitra Card Surat Money Card Bangalore, Kochi, etc.
An exclusive contract exists between each city and its partnering bank for card issuance, and it prevents other smart cards to be used in the city.(Common data format exists in Gujarat since both cards are implemented by ICICI Bank and NEC)
Other Cities / States
Commercial
Technical
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Challenges to achieve interoperability (1/3)
25
▌ In Ahmedabad, although Janmitra Card will be available for Metro, there is a high possibility the card newly introduced by Metro cannot be used in BRT nor City Bus.
▌ Joint discussion between State and City governments is required since Metro is ran under the State where Bus/BRT are ran by the City.
Ahmedabad
Metro(State led) Bus・BRT(City led)
JICA
ODA Loan
Govt of India Govt of GJ
Metro Operator
(GMRCL)
Incorporating SPV
AFC Vendor
(Nippon Signal)
Interoperability with BRTS is specified in the project specification sheet.
PTO Specific Card
Ahmedabad
(AMC)Appointing Municipal commissioner of AMC
Project Implementer
(SCADL*1)
Issuing Bank
(ICICI Bank)
BRTS Operator
(AJL)
Bus Operator
(AMTS)
Funding Funding Funding
AFC Vendor
(NEC)Interoperability arrangement for
Janmitra card in Metro
Co-brand
NCMC
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Challenges to achieve interoperability (2/3)
*1 SCADL: Smart City Ahmedabad Development Ltd
26
▌ In Surat, a new Metro operator will be decided in 2019 and will start operation in 2023. Without coordination between the State and the City, interoperability within Surat cannot be achieved. (There is a possibility GMRCL will become the operator*1)
Surat(International Financial Institution)
Funding
Govt of India Govt of GJ
Metro Operator
(GMRCL or other)
AFC Vendor
(To be decided)
SCADL: Smart City Ahmedabad Development Ltd
Surat
(SMC)
Project Implementer
(SSCDL*2)
Issuing Bank
(ICICI Bank)
BRTS Operator
(Sitilink)
Bus Operator
(Sitilink)
Funding
AFC Vendor
(NEC)
Co-Brand
*1 Metro Rail News「Surat Metro/ Metro rail work in Diamond city to be launched in 2019」(2018/8/25)*2 SSCDL: Surat Smart City Development Ltd
Incorporating SPV
Metro(State led) Bus・BRT(City led)
Appointing Municipal commissioner of SMC
Funding Funding NCMC
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Challenges to achieve interoperability (3/3)
27
▌ According to the bidding specification documents, it is assumed that the number of card users will increase significantly in 7 years.
▌ Also, the card issuing banks are expected to promote the usability of cards. However, currently the actual card penetration rates seem to be insufficient.
Ahmedabad Surat
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Necessity to promote Smart Card
Surat Money Card (only personarised cards) was expected that there would be about 2.65 million users in 7 years
Source: “RFP for Open Loop Smart Card Common City Payments System, AMC”
In BOQ of the bidding specification document of Ahmedabad, there was a column for inputting the 1 million cards expenses.
Source: “RFP for Selection of Financial Institution for Open Loop Smart Card Common City Payments System, SMC”
28
▌ We have conducted a hearing survey for 540 citizens.
▌ Interviewees have listed such as, “Complicated Card Validation Procedure”, “Security concerns”, and “Limited number of card accepted places” as challenges for Janmitra card.
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Result of the Passenger Survey conducted in Ahmedabad
23%
77%
29
▌ Gujarat State government announced the vision ”Mobility Led Urban Development”.
▌ With the vision, state government is trying to implement facilities such as Integrated Multi Modal Transit Hub, and multi level parking to realise seamless use of public transportation, and reduce traffic congestion.
Shri Mukesh Puri - IAS, Principal Secretary, Urban Development and Urban Housing Department, Government of Gujarat
at Vibrant Gujarat Global Summit 2019
“Mobility Led Urban Development is important as it affects urban city planning, development, policy and fund use, which should be focused on.”
“50% of revenue loss in public transport in Gujarat will be born by State Government for 7 years to promote it as mainstream of people movement.”
“Parking in city centre is problem. Multi Level On Street Parking is already constructed in Ahmedabad, Surat City, and planned in other major cities Gandhinagar, Rajkot and Vadodara, where the released parking policy in Surat will be followed .”
“Integrated Multi Modal Transit Hub will connect all the public transport – Metro, HSR, Railways, BRTS, Bus and GSRTC.”
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
Gujarat state’s vision for its urban development
30
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
History of NCMC
▌ The National Common Mobility Card (NCMC) is an initiative by the Ministry of Housing and Urban Affairs (MoHUA) to develop common cards that can be used for any transportation systems
▌ In September 2018, "One Nation One Card" policy was announced aiming nation wide interoperability as well as cost reduction of the entire ecosystem.
~2014Though MORE’s technical standard was published as a traffic common card, it was withdrawn because of issues related to security and mutual use.
2015~MoHUA has established the technical standard of NCMC. In addition, NPCI formulated RuPay adopted NCMC specification (qSPARC) .
~2012UTIITSL(Government enterprise) began preparation for introducing NCMC from 2010. In 2012, MoUD released technical standard of “MORE” as traffic common card.
Soon after the inauguration of the Modi government, the “Digital India Program” was formulated as a national policy. One of the goals of it is to promote cashless electronification of financial transactions.
August 2014Digital India
In June 2015, “Smart Cities Mission Statement & Guidelines” was announced as one of the important policies of the government. MoHUA takes the initiative to implement 100 smart cities by utilizing ICT.
June 2015Smart City Mission
The government suddenly abolished high-value banknotes (Rs 500, Rs 1,000) to promote realisation of cashless society as well as FinTech business.
November 2016Abolition of High Bills
2006Cashless fare payment system development concept was mentioned on the National Urban Transport Policy 2006.
2018~MoHUA has been working closely with NITI Aayog, C-DAC, and NPCI to further standardize the entire ecosystem including financial institutions, AFC vendors, hardware makers to populariseNCMC.
History of NCMC
Government Policies to Promote Cashless Society
“India will shortly unveil a one-nation-one-card policy for public transport that will bring seamless connectivity between various modes of transport”
-NITI Aayog CEO Amitabh Kant said on September 2018
NITI: National Institution for Transforming India (see the next slide)C-DAC: Centre for Development of Advanced Computing (see the next slide)NPCI: National Payments Corporation of India (see the next slide)
31
▌ The Committee for Recommendation on Standards & Specifications for NCMC was established in 2014, and the current NCMC specification was formulated. Currently, NCMC is handled as part of the National Intelligent Transportation Systems (ITS) Committee established by NITI Aayog.
▌ The key stakeholders of NCMC are MoHUA (responsible ministry), NITI Aayog (advice for the entire introduction policy), NPCI (specification formulation), and MeitY (technical advice on specification formulation).
NCMC Key Stakeholders in Indian Central Government
MoHUA
MoF*4
NPCI
MeitY*2
C-DAC
NIC*3
Technical specification and promotion of NCMC
Clearance(RuPay)Standard Spec
NITI Aayog (policy think tank of Government)
Technical Advice
MoRTH*1
Responsiblefor Intercity
transportation
Highway MoR*5
Indian Railways
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Key Stakeholders for NCMC discussion
Responsiblefor Urban
transportation
Urban Mobility Smart City
“Standard technical spec for AFC*6 system, financial institution system, hardware, etc. were submitted to MoHUA. PoC is planned with Delhi Metro.”
C-DAC
NPCI
“C-DAC is working to decide technical spec for AFC and data format by March 2019.”
NCMC Committee (2014) members
*1 MoRTH: Ministry of Road Transport and Highways *2 MeitY: Ministry of Electronics and Information Technology *3 NIC: National Informatics Centre
*4 MoF: Ministry of Finance *5 MoR: Ministry of Railways *6 AFC: Automated Fare Collection
32
Three Categories of PPIs by RBI
Closed System PPIs Semi-closed System PPIs Open System PPIs
Not necessary (Not classified as payment systems requiring approval / authorisation by the RBI)
Not permit cash withdrawal, irrespective of whether they are issued by banks or non-banks
Permit cash withdrawal at ATMs / Point of Sale / Business Correspondents
Definition of PPIs by RBI
Card Issuer
Use
Not permit cash withdrawalCash
withdrawal
Approval by RBI
Used for purchase of goods and services, including financial services, remittance facilities, etc., at a group of clearly identified merchant locations / establishments which have a specific contract with the issuer
An entity for facilitating the purchase of goods and services from that entity only (banks and non-banks)
An entity for facilitating the purchase of goods and services (banks and non-banks)
Banks only
Used at any merchant for purchase of goods and services, including financial services, remittance facilities, etc.
cannot be used for payments or settlement for third party services
NecessaryNecessary
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Categories of the Smart Card
▌ Regarding Prepaid Payment Instruments (PPIs), the Reserve Bank of India (RBI) published “Master Direction on Issuance and Operation of Prepaid Payment Instruments” on October 11, 2017(Updated as on December 29, 2017), in which PPIs are defined into three categories.
Payment instruments that facilitate purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments.
Source: Reserve Bank of India (https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=11142)
33
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
NCMC related technical standard: EMV Open Loop Card with stored value
▌ In 2015, the Committee for Recommendations on Standards & Specifications for National Common Mobility Card (NCMC Committee) decided EMV *1Open Loop Card with stored value as NCMC standard in consideration of interoperability, ease of implementation, actual implementation cases, implementation cost, related regulation, etc.
Closed Loop ModelEMV Open Loop
Account based Model
EMV Open Loop Card based (Stored Value)
Model
Easy implementation as thismodel is already implemented by AFC venders
No constraint for use in transit Fast transaction time
EMV based standard and spec are open and technically Established
Supported by all the established payment schemes like VISA,Master, RuPay, etc.
Technically supported by many software venders
Possibility of proliferation in other domains
Cost covered by PTO is medium since part of the activity is taken by the banks
Interoperability is easily achievable
EMV based standard and spec are open and technically Established
RuPay has further built stored value functionality on EMV platform
Relatively easy implementation because it uses the features of present closed loop model
No constraint for use in transit Possibility of proliferation in other
domains Cost for PTO is the lowest due to
the possibility of wider adoption and indigenous open standard
Benefit in India is high as it is relevant to Make in India andDesign in India policies
Interoperability and potential for use in other domain are high and it has advantage of stored value
Standard and spec are not necessarily open
No standard exists in India Standard and spec are not
supported by independentbodies representing the industry or government
Limited possibility ofproliferation in other domains
Cost is high because it isproprietary and captive infrastructure needs to be built by PTO
Benefit in India is low as all solutions are controlled by international players
Interoperability is limited
It may be difficult for online validation of commuters during rush hour
Business requirement of checking the presence of ticket or pass on card is not available
Benefit in India is low as all solutions are controlled by international players
No serious demerit
Source:MoUD Report of the committee for Standards & Specifications of NCMC
Merit
Demerit
*1: EMV is the international de facto standard which is agreed among EuroPay, Master and VISA, compliant with ISO/IEC7816 while defining the specifications of IC cards and terminals necessary for the financial field.
34
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
NCMC related technical standard: RuPay (1/2)
▌ In order to promote cashless, in 2012 NPCI (Indian Settlement Corporation) introduced the Indian domestic non-cash settlement means "RuPay“. RuPay has been adopted to Janmitra Card in Ahmedabad and Surat Money Card in Surat.
Organisation RuPay Overview Advantages of RuPay
Headquarter: Mumbai
Founded: 26 March 2012
Area Served: India, Singapore
Products: Debit cards, Credit Cards Prepaid cards Virtual Cards
Parent Company: NPCI
Key persons: Dilip Asbe (CEO) Dr. N. Rajendran (CTO) Nalin Bansal (VP, Contactless)
Website: https://www.rupay.co.in/
RuPay is an Indian domestic card scheme conceived and launched by the NPCI
It was created to fulfil the Reserve Bank of India’s (RBI) desire to have a domestic, open loop, and multilateral system of payments and RuPayfacilitates electronic payment at all Indian banks and financial institutions. The E-commerce Draft Policy (July 2018) mandates the inclusion of RuPay as a payment option in online transactions)
It is an initiative to build the necessary banking infrastructure required to propel India towards a ‘less cash’ economy
Lower cost and affordability: Since the transaction processing will happen domestically, it would lead to lower cost of clearing and settlement for each transaction. This will drive usage of cards in the industry.
Customized product offering: Domestic scheme is committed towards development of customized product and service offerings for Indian consumers.
Protection of information:Transaction and customer data related to RuPay card transactions will reside in India.
Provide electronic product options to untapped/unexplored consumer: Right pricing of RuPayproducts would ensure that banks can target the untapped consumer in rural areas
Inter-operability between payment channels and products:RuPay cards provide interoperability across platforms including ATMs, mobile technology, cheques, etc.
35
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
NCMC related technical standard: RuPay (2/2)
▌ RuPay has been strengthening collaboration with Indian financial institutions and became the largest card network in India (domestic card market share is 65%) depriving domestic VISA and Master's share *1. In addition, RuPay expanded its use in Singapore from May 2018.
RuPay Contactless Overview Objectives Global Alliance
RuPay Contactless is an open loop EMV based payment product
This secure card can be used for payment applications like transport (Metro, Bus, etc.), toll, parking, shopping, etc.
It offers the unique proposition of One Card for all Payments
Provide mechanism for electronic payments including Low Value Payments (LVP)
Deliver a product to address concerns of customers considering Indian Banks and Merchants
Motivate customers to switch from cash to electronic payments
Promote the use of RuPay with expanding the global alliance with many credit card companies including JCB Card in Japan.
• Discover Card (America)• Diners Club Card (America)• JCB Card (Japan)• Union Pay (China)• NETS (Singapore)• BC Card (Korea)• ELO (Brazil)• Dina Card (Serbia)
Contactless Payment Collaboration with Banks
Application of contactless smart chip technology realises contactless payments with no physical connection between the consumer payment device and the physical POS terminal
Contactless device contains an antenna that securely transmits transaction information, when touched against terminal
RuPay has collaborated with almost 600 international, regional and local banks across the country
Promote the use of RuPay with ten core promoter banks:• State Bank of India• Punjab National Bank• Canara Bank• Bank of Baroda• Union Bank of India• Bank of India• ICICI Bank• HDFC Bank• Citibank N. A. • HSBC
Advantages of RuPay Contactless
Speed and Convenience: Average transaction time in POS is reduced by 30% to 40%
Faster: 63% faster than normal cash transactions and 53% faster than normal card transactions
Safe and Secure: Sophisticated chip technology and multi levels of encryptions is used to guarantee secure transactions
*1: ENTRACKR ”With 65% market share, UPI and RuPay ruling domestic payments market, says Arun Jaitley” (https://entrackr.com/2018/11/upi-rupay-india-payments-market/ )
36
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
NCMC related technical standard: qSPARC
▌ “qSPARC” is the NPCI-defined technical standard adopted to RuPay. It has already been introduced to cities such as Kochi, Bangalore, Ahmedabad, and Surat. More than 1.5 million qSPARC (version1) specifications are issued as of August 2018.
▌ Interoperability cannot be achieved due to insufficient transportation specific common data format. MoHUA, C-DAC, and NPCI are discussing to introduce improved common format.
Clearance Standard
Transportation Use
Service Area
Dual Accounts
Define EMV standard in Contact mode and RuPayproprietary specifications in contactless mode.
Payment in transportation via both contact and contactless interfaces are available.
There is a service area where merchants and PTOs can freely use in one card, and various services such as transit points can be provided based on agreement with the card issuer
The maximum capacity used for one service is 128 byte
It is recommended to implement the maximum of 20 applications on one card though up to 255 services can be accepted as logical value on the same card
Interoperability cannot be achieved due to insufficient common data format.
IDEMIA, a French security company, is an only one company certified by NPCI to manufacture and personalise RuPay chip contact and contactless cards, on the qSPARC v2 platform.
qSPARC v2 Card Manufacturer
Global Balance
Local Balance
Service1 …
Service2
Define both Global Balance and Local Balance
Possible to have two accounts on one card, an account for which the card issuer controls the balance (Global account) and an account for which Merchants and the transport operator manage the balance (Local account).
Source: from NPCI “RuPay Contactless Ideathon”
Service20
37
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Comparison between Japanese and Indian payment related law
▌ The comparison between India’s Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPIs-MTS part) and Japan’s Payment Services Act.
▌ PTOs are card issuers in Japan, while banks are issuers of NCMC in India.
Point
Japan India
Payment Service Act (Act No. 59 of June 24, 2009, Updated Act No. 49 of June 2, 2017)
The Reserve Bank of India(Issuance and Operation of Prepaid Payment Instruments)
Directions, 2017(Master Direction)
Supervisory Authority Financial Services Agency Reserve Bank of India
Applicability Prepaid Payment Instruments Prepaid Payment Instruments
Applicability for
Own BusinessAll types are subject to law (Depending on the amount of stored value)
All types are subject to lawClosed Loop(for own business), Semi-Closed Loop and Open Loop(for third party business)
Third-partyBusiness
Issuer Banks and Non-banksOpen Loop (Only banks), Closed Loop and Semi-Closed Loop (Banks, and non banks = The Companies Act 1956/Companies Act 2013 registered companies)
Approval by Supervisory Authorityfor Own Business: Notification is required Closed System: RBI approval not required.
For Third-party Business: Registration is required Open Loop, Semi-Closed Loop: RBI approval required.
Applicability for Transportation IC card
Not applicable. *Applicable, if IC card can be used for electronic money
Applicable as PPI for mass transit system, with the maximum stored value of Rs. 3,000.
Security Deposits for IssuanceIn case of non-banks: Half of their unused balanceIncase of banks: not required
Required for non banks to maintain their outstanding balance in the escrow account, which have to hold higher balance than the value of outstanding PPIs and payments due to merchants.
Refund of Value Not permitted in principle Permitted only for Open System PPIs
Supervisory MethodOn-site and off-site inspectionPoint of inspection is dearly stated and published as an administrative guideline
Document submission (Financial audit report, system audit report, etc.)
38
▌ As per RBI’s direction, ten rules are stipulated for Closed system PPIs and Semi-closed System PPIs issued by Public Transport Operators.
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Regulations for Closed System PPIs and Semi-closed System PPIs
The semi-closed Prepaid Payment Instruments (PPI) shall be issued by mass transit system (MTS) operators after authorization to issue and operate such PPIs under the 5th Payment & Settlements act 2007.
The PPI-MTS shall necessarily contain the Automated Fare Collection application related to the transit service to qualify as PPI-MTS.
The card shall be used only at other merchants whose activities are allied / related to or are carried on within the premisesof the transit system
The issuer may decide about the customer details, if any, required to be obtained for issuance of such PPIs.
The PPI-MTS issued shall be reloadable in nature and the maximum value outstanding in PPI cannot exceed the limit of Rs. 3,000/- at any point of time.
Cash-out or refund or funds transfer shall not be permitted from these PPIs.
Other requirements such as escrow arrangement, customer grievance redressal mechanism, agent due diligence, reporting and MIS requirements, etc. applicable to issuance of PPIs (as described in the attachment) shall also be applicable in respect of PPI-MTS.
These PPIs may be revalidated (including through issuance of new instrument) as per the Board approved policy of the issuer.
Non-bank PPI issuers cannot transfer the outstanding balance to their Profit & Loss account for at least three years from the expiry date of PPI. In case the PPI holder approaches the PPI issuer for refund of such amount, at any time after the expiry date of PPI, then the same shall be paid to the PPI holder in a bank account (For Bank users please refer the attachment)
The features of such PPIs shall be clearly communicated to the PPI holder by SMS / e-mail / post or by any other means at the time of issuance of the PPI / before the first loading of funds.
1
2
3
4
5
6
7
8
9
10
39
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Status of Smart Card implementation for major cities
▌ Implementation of smart cards for public transportation is a growing trend.
▌ Like Gujarat, some states and cities hold several smart cards within their jurisdictions.
Bangalore
Kochi
Raipur
Bhubaneswar
Noida
Nagpur(Planning)
Hyderabad(Planning)Mumbai(Planning)
Delhi
Chennai
Kolkata
LucknowJaipur
Pune(Planning)
UP State
Navi Mumbai(Planning)
Smart Card status outside Gujarat
*1 Navi Mumbai Municipal Corporation *2 Source: Information from hearing with stakeholders
NCMC
PTO Specific
City Format Status
Delhi PTO Specific Announced “ONE Card”, available for Bus/Metro (3rd Dec 2018)
Mumbai NCMC(Planning) Announced to issue common card for Mumbai by Dec 2018
Kolkata PTO Specific Announced to commonise cards for 2 Metro lines ( 30th Dec 2018)
Chennai PTO Specific Metro card will be available for bus by Dec 2018
Bangalore NCMC Announced BMTC card under Smart City Scheme (17th June 2017)
Hyderabad NCMC(Planning) SBI is planning to do pilot for common card by the end of Jan 2019
Kochi NCMCImplemented pilot for interoperability among Metro and 7 buses. Announced Kochi 1 Card ( 6th June 2017)
Nagpur NCMC(Planning) Announced to issue Maha card by Dec 2019, collaborating with SBI
Pune PTO Specific Planning to issue smart card
Bhubaneswar NCMCAnnounced the issuance of Odyssey Card in collaboration with ICICI bank (18th Oct 2018)
Raipur NCMCAnnounced to issue One Raipur card in collaboration with Axis Bank
Noida NCMCAnnounced to issue City One card in collaboration with SBI (30th
Aug 2018)
UP State PTO SpecificIssue prepaid card available both for bus and shopping, in collaboration with ICICI bank (5th Mar 2014)
Jaipur PTO SpecificIssue debit card available both for metro and shopping, in collaboration with HDFC
Lucknow PTO Specific Announced a common card for bus and metro (24th Dec 2016)
Navi Mumbai NCMC(Planning)NMMC*1 is planning to issue common card in collaboration with HDFC Bank*2
40
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Smart Cards in major cities (1/3)
▌ There exists various smart cards in major cities, since they introduced their own specific smart cards before the launch of NCMC.
# City Card Issuer Format Type Available Services # of cardsDaily
TransactionDaily
Ridership
1 Delhi Delhi Metro Smart Card DMRCPTO
SpecificClosed Metro
2M
(As of Dec 2017)
Rs.129M(\200M)
2.76M
2 Delhi ONE CardDMRC/DTC
PTO Specific
Semi-Closed
Metro, BusN/A
(Issue started from Dec 2018)
N/AMetro 2.76M
Bus 3.2M
3 Delhi
DMRC Coral/Platinum Debit CardICICI Bank Unifare Delhi Metro Credit Card
ICICIBank
PTO Specific
OpenMetro, Bus, Retail, Ecommerce(Auto Rickshaw, Taxi in the future)
N/A N/AMetro 2.76M
Bus 3.2M
4 MumbaiMumbai Metro Smart Card
Mumbai Metro One
PTO Specific
Closed Metro N/A N/A 0.4M
5 Mumbai
Mumbai Metro Coral/Platinum Debit CardICICI Bank UnifareMumbai Metro Credit Card
ICICIBank
PTO Specific
OpenMetro, Retail, Ecommerce(Railways, Bus, Auto Rickshaw, Monorail, Parking in the future)
N/A N/A 0.4M
6 Mumbai Mumbai Metro SBI Card SBI BankPTO
SpecificOpen
Metro, Retail, Ecommerce(Railways, Bus, Monorail, Parking in the future)
N/A N/A 0.4M
7 MumbaiMumbai Monorail Smart Card
MMRDAPTO
SpecificClosed Monorail N/A N/A 1.9k
8 MumbaiINDIAN RAILWAYS Smart Card
Central & Western Railway
PTO Specific
Closed Railways N/A N/A 7.56M
9 Kolkata Smart Card KMRCLPTO
SpecificClosed
Bus(Metro, Tram, Ferry, Auto Rickshaw, Taxi, Railways, Retail, Parking in the future)
N/A N/A 0.7M
41
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Smart Cards in major cities(2/3)
▌ As part of the Smart City Mission, Bangalore has introduced NCMC compliant common card
# City Card Issuer Format Type Available Services # of cards Daily Transaction
DailyRidership
10 Chennai Smart Card CMRLPTO
SpecificClosed Metro
1.07M(As of Fb 2018)
Rs.1.05M(\1.64M)
0.09M
11 Chennai Chennai Metro SBI Card SBIPTO
SpecificOpen
Metro, Parking, Retail, Ecommerce (Auto Rickshaw, Bus, Taxi in the future) N/A N/A 0.09M
12 BangaloreNamma Metro Travel Card
BMRCLPTO
SpecificClosed Metro
1.4M(As of Oct
2018)
Rs.13M(\20M)
0.4M
13 Bangalore
Bangalore Metro Coral/Platinum Debit CardICICI Bank UnifareBangalore Metro Credit Card
ICICI BankPTO
SpecificOpen
Metro, Retail, Ecommerce (Auto Rickshaw, Bus, Taxi in the future) N/A N/A 0.4M
14 BangaloreSBI Debit cum Transit Card
SBIPTO
SpecificOpen
Metro, Retail, Ecommerce (Auto Rickshaw, Bus, Taxi in the future) N/A N/A 0.4M
15 Bangalore BMTC Smart Card AXIS Bank NCMC OpenMetro, Retail, Ecommerce (Auto Rickshaw, Bus, Taxi, parking in the future) N/A N/A 5.13M
16 HyderabadHyderabad Metro Rail Smart Card
Hyderabad Metro Rail
PTO Specific
ClosedMetro (Auto Rickshaw, Bus, Taxi, Ecommerce, Retail in the future)
0.28M(As of Aug
2018)
Rs.0.78M(\1.22M)
0.22M
17 Kochi Kochi 1 Card AXIS Bank NCMC Open Metro, Bus, Retail, Ecommerce, parking20K
(As of Oct 2018)
Rs.1.2M(\1.87M)
Metro 0.05MBus N/A
18 UP State UPSRTC Card ICICI BankPTO
SpecificOpen Bus, Retail, Ecommerce, 0.16M
(As of 2017)Rs.120M(\187M)
1.8M
19 Jaipur Smart Card JMRCLPTO
SpecificClosed Metro N/A N/A 1.8M
42
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Smart Cards in major cities (3/3)
▌ Some cities started to introduce NCMC compliant card after 2018.
# City Card Issuer Format Type Available Services # of cards DailyTransaction
Daily Passenger
20 JaipurHDFC Bank Jaipur Metro Debit Card
HDFC BankPTO
SpecificOpen Metro, Retail, Ecommerce N/A N/A 18k
21 Pune MI Cards PMPMLPTO
SpecificClosed
Bus(Property tax, Utility bill, Parking, Metro in the future)
N/A(Issue started
from Jan 2017)
Rs.15M(\23.4M)
1M
22 Lucknow Go Smart Card SBIPTO
SpecificClosed
Metro(Bus, Railways in the future)
N/A(Issue started
from Sep 2017)N/A 11K
23 Nagpur MAHA Card SBI NCMC Open Metro, Bus, Feeder Bus N/A N/A0.36M
(Expected)
24 Bhubaneswar Odyssey Card ICICI Bank NCMC OpenBus, Tax payment, Retail, Ecommerce, Parking
N/A(Issue started
from Oct 2018)N/A N/A
25 RaipurOne Raipur Smart Card
Axis Bank NCMC Open Bus, Parking, Retail, Resident taxN/A
(Issue started from Sep 2018)
N/A N/A
26 Noida City 1 Card SBI Bank NCMC Open Metro, Bus, Parking, RetailN/A
(Issue started from Jan 2019)
N/A N/A
27 Navi Mumbai (To be decided) HDFC Bank NCMC Open Bus, (detail to be decided) N/A N/A N/A
43
▌ Indian Railways operate across the country, with more than 1.3 million employees, daily ridership of more than 20 million.
▌ Introduced online ticketing, and planning to comply with NCMC in the future.
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Indian Railways: Overview
Overview
Source:https://erail.in/info/railway-maps-indian-railways/1808
Foundation: April, 1853 Ministry in Charge: Ministry of Railways No. of stations: 7,349(March, 2017) No. of employees: 1.308M (March, 2017) No. of passengers: Approx 2.2M/Day
Ticketing
Regular ticket: 21M/Day Reserved seat ticket: 1.5~2.2M/Day Ticketing place: Station counter Distributing Agencies (2,000 agencies) Post Office (270 Branches) Internet based distributing Agencies (70,000
agencies) Mobile (Purchasing through SMS available)
Indian Railways owns its own seat reservation and ticketing system called ”CONCERT”. The system itself is operated by Centre for Railway Information Systems, under Ministry of Railways. Their online reservation system is operated by IRCTC, a subsidiary company of Indian Railways.
Source: Indian Railways (http://www.indianrailways.gov.in/railwayboard/)
44
▌ Mumbai-Ahmedabad High Speed Railway, adopting Japanese bullet train technology, is set to connect 8 stations in Gujarat (including Ahmedabad, Surat, Vadodara). It will also work as a hub to connect various modes exists in each city.
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Mumbai-Ahmedabad High Speed Railway: Overview
Overview
National High Speed Railway Corporation Limited (NHSRCL) Headquarter: New Delhi Project Office: Ahmedabad, Vadodara, Surat, Mumbai
Length: 508.17km (Travel time 127mins) Maharashtra State 155.642km Gujarat State 350.530km Dadra and Nagar Haveli Union Territory 2km
No. of Stations: 12 No. of depots: 2 (Thane, Sabarmati) Technical Highest Speed: 350km/h *Commercial Highest Speed will be 320km/h
Capacity: 16 cars / 1,200 passengers (Originally 10 cars / 750 passengers) Expected maximum No. of passengers per day
2023: 17,900/One way2033: 31,700/One way2043: 56,800/One way2053: 92,900/One way
Total project cost: \1,568B (Rs.1= \1.6) Approximately 80% of the project cost (Excluding land acquisition cost)
will be funded by Japan International Cooperation Agency (JICA) Operation: Planned to start from 2023 Ticketing tender started to be discussed from 2018 (Outside JICA’s ODA scope)
Source: NHSRCL (https://www.nhsrcl.in/about-nhsrcl)
45
▌ “Diamond Quadrilateral” project aims to establish the high speed rail network to connect four mega cities in India, Delhi, Mumbai, Kolkata and Chennai which is expected as the candidate of smart card expansion domain in future.
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Diamond Quadrilateral project (High speed rail network in India)
Delhi
Mumbai
Chennai
Kolkata
Project Overview
The Diamond Quadrilateral is a project of the Indian railways to establish a high speed rail network in India. The Diamond Quadrilateral will connect the four mega cities in India, Delhi, Mumbai, Kolkata and Chennai. So far 6 corridors have been identified in diamond quadrilateral.
Diamond Quadrilateral corridors
1. Delhi – Mumbai2. Mumbai – Chennai3. Chennai – Kolkata
4. Kolkata – Delhi5. Delhi – Chennai6. Mumbai - Kolkata
Current situation of Diamond Quadrilateral
Under Feasibility Study
Approved Government of India approved the proposal of Japan to build India's first high-speed railway
on 10 December 2015 between Ahmedabad and Mumbai. Construction is expected to be completed by 2023
Delhi Mumbai - Feasibility Study Contract awarded to a Consortium of M/s The Third Railway Survey and Design Institute Group Corporation (CHINA) and Lahmeyer International (India) Pvt. Ltd, India
Mumbai Chennai - Feasibility Study Contract awarded to a Consortium of M/s SYSTRA (FRANCE) - RITES- Ernest &Young LLP
Delhi Kolkata - Feasibility Study Contract awarded to a Consortium of M/s INECO (SPAIN) -M/s TYPSA- M/s Intercontinental Consultants and Technocrats Private Limited
46
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
NCMC response policy in IR, NHSRCL and other Gujarat cities
▌ Vadodara and Rajkot are planning to implement smart card same as Ahmedabad and Surat.
▌ IR and NHSRCL will also follow the guideline from the Government of India to introduce smart cards.
Vadodara Municipal
Corporation (VMC)
Rajkot Municipal Corporation
(RMC)
Gujarat State Road Transport
Corporation (GSRTC)
National High Speed Rail
Corporation Limited (NHSRCL)
Indian Railway
(IR)
VMC is planning to implement intelligent transit management systemfor its buses, metro, rail services etc.
Also planning to introduce NCMC compliant and Bharat QR basefare collection system
RMC is planning to launch the smart card for the payments of bus ticketsin its Rajkot Bus Rapid Transit System
GSRTC has partnered with Yes bank to install over 125 Point of Sale Terminalsacross all its depots for digitizing the payments.
Operation start expected in 2023 NHSRCL will adopt One Nation One Card depending upon the guidelines
issued by the Government of India, NITI Aayog
IR is planning to introduce smart card with paper ticket printed at AutomaticTicket Vending Machine or from booking counters
Mumbai, Chennai & Kolkata suburban railways are sooner going to adoptcommon mobility card for its commuters
Planning
Planning
Following
Planning
47
2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion
Challenges towards smart card expansion based on IR, NHSRCL trends
▌ The state government initiative is necessary to achieve the smart card expansion and interoperability in Gujarat state which covers ongoing/future metro and high speed railway projects, intercity bus, planned other city bus/BRT, unplanned area like auto rickshaw etc.
Government owned transportation
State owned transportation
City managed transportation
Government and State owned
transportation
Indian Railways
2018 2019 2020 2021 2022 2023~
Mumbai-Ahmedabad HSR
Ahmedabad metro, parking lot
Surat metro
Gujarat State Road Transport Corporation
Ahmedabad BRT, city bus, parking lot
Surat BRT, city bus, parking lot
Rajkot BRT, city bus
Vadodara city bus
Private sector transportation
Auto rickshaw etc.
Take
con
sis
ten
cy
betw
een
polic
y a
nd
pla
n fo
r inte
rop
era
bility
Implementing
Planned
Planned
Planned
Planned
In service
48
India
PTO*1
Nationwide Interoperability Centre(IC Card Interoperability Center)
Japan
2-1-3. Survey for trends of local players which provide transportation IC card payment service
Difference of smart card management between Japan and India
▌ In Japan, public transport operators (PTOs) issue their smart cards, perform clearing and settlement via Nationwide Interoperability Centre in case of journey crossing multiple transportations using card.
▌ On the other hand, in India, financial institutes (FIs) issue their smart cards, aims to achieve clearing and settlement via National Automated Clearing House (NACH) operated by NPCI in case of journey crossing multiple transportations using card.
PTOPTO PTO PTOPTO
Issuing bank
Issuing bank
Issuing bank
Acquiring bank
Acquiring bank
Acquiring bank
National Automated Clearing House(NPCI)
*1: Public Transport Operator
49
▌ NCMC compliant card cannot be issued by public transport operators on their own, but financial institutions (banks) as prepaid, debit, and credit card.
▌ Current major NCMC issuing authorities are as below;
2-1-3. Survey for trends of local players which provide transportation IC card payment service
NCMC issuing authorities
# Issuer Overview Major projects Card image
1State
Bank of India
Founded: 1806 Location: Mumbai No. of Branches: 22,414 Largest government-owned
commercial bank in India
Nagpur Metro Noida Metro Hyderabad Metro
2ICICIBank
Founded: 1955 Location: Mumbai No. of Branches: 4,867 Largest private sector bank in India
Ahmedabad Smart City Surat Smart City Bhubaneswar Smart City
3 Axis Bank
Founded: 1993 Location: Mumbai No. of Branches: 3,882 3rd largest private sector bank in
India
Kochi Metro Raipur Smart City
*1
<SBI NMRC Smart Card>
*3
*2
<Janmitra Card>
*1 Source: SBI website *2 Source: MoHUA SMARTNET「COMMON CARD PAYMENT SYSTEM A step towards green travel *3 Source: Axis Bank Website
<Kochi 1 Card>
50
▌ In the competitive AFC market with existing global vendors, Indian vendors are also emerging as they can offer solutions at very low prices, where differentiation of solution is much required.
2-1-3. Survey for trends of local players which provide transportation IC card payment service
Automatic Fare Collection system vendors
Market # VendorHead-
QuarterFounded Employees
Sales[US$]
Major projects(Awarded year)
Metro
1 Datamatics Global Services Mumbai 1975 10,000 131M Lucknow (2016)
2 ASIS Elektronik ve Bilişim Sistemleri Istanbul 2007 N/A N/A Kochi (2015)
3 Indra SistemasAlco-
bendas1993 40,000 3.4B
Kolkata (2009)Navi Mumbai (2016)Delhi (2007)
4 Nippon Signal Tokyo 1928 1,278 742MChennai (2011)Ahmedabad (2018)
5 Samsung SDS Seoul 1985 22,871 8.2B
Delhi (2008)Bangalore (2009)Jaipur (2012)Hyderabad (2013)
6 SC SOFT Singapore 2009 N/A N/ANoida (2017)Nagpur (2017)
7 ThalesLa
Défense1893 60,820 17.2B
Delhi (2001, 2004, 2014)Gurgaon (2014)
Bus/BRT
8 AGS Transact Technologies Mumbai 2002 9,925 186M Amritsar (2017)
9 AMNEX InfotechnologiesAhmeda
bad2008 400 N/A Navi Mumbai (2017)
10 NEC Tokyo 1899 109,390 25.6BAhmedabad (2017)Surat (2017)Hubli (2016)
51
▌ Instead of bearing all the cost to implement the NCMC system, a city government gives a financial institution exclusive card issuing and operation right, then the financial institution undertakes to implement, operate and maintain the smart card use environment (PPP model).
▌ City government or transport operator cannot accept other city smart card issued by other bank because of the exclusive contract with the specific bank.
2-1-3. Survey for trends of local players which provide transportation IC card payment service
Business model for NCMC implementation (1/2)
*1: Common Card Payment System, *2: Automated Fare Collection(smart card base fare collection system)Source: Created from “RFP for Open Loop Smart Card Common City Payments System, AMC” and “RFP for Selection of Financial Institution for Open Loop Smart Card Common City Payments
System, SMC”
City government / Transport
operator
Card issuing bank
AFC vendor
• AFC System implementation
• AFC System O&M for 7 years
• AFC System implementation fee• AFC System O&M fee
Exclusive card issuing and operation rights for 7 years Agreed payment for portion of the revenue from the card
services in public sector including public transportation• Transaction fee
Card Issuing and Operation Improvement of smart card environment (implementation,
operation and maintenance (O&M) of information systems like CCPS*1 and AFC*2, distribution of validators to more than 1,000 service points, helpdesk, promotion etc.)
Royalty fee for exclusive card issuing and operation rights
52
▌ In another model, financial institution bears the cost of implementation, operation and maintenance of CCPS*1 and AFC*2, and recovers own investment with transport operator by revenue sharing, but the profitability is questioned as no guarantee of smart card user expansion despite huge investment burden.
2-1-3. Survey for trends of local players which provide transportation IC card payment service
Business model for NCMC implementation (2/2)
City government / Transport
operator
Card issuing bank
AFC vendor
Exclusive card issuing and operation rights Agreed payment for portion of the revenue from
the card services in public sector including public transportation
• Revenue Share
• AFC Systemimplementation fee
• AFC System O&Mfee
Card Issuing and Operation Improvement of smart card environment Royalty fee for exclusive card issuing and
operation rights
Examples of recent revenue-sharing models
State Bank of India
SC SOFT
State Bank of India
SC SOFT
Axis BankASIS Elektronik veBilişim Sistemleri
Noida Metro(Operated since Jan, 2019)
Nagpur Metro(Under construction)
Kochi Metro(Operated since Jun, 2017)
Card issuing bank AFC vendor• AFC System
implementation• AFC System
O&M
*1: Common Card Payment System, *2: Automated Fare Collection(smart card base fare collection system)
53
▌ The Government of India (GoI) formulated “Digital India Programme” in August, 2014 and abolish high-value banknotes in November, 2016 to promote digitalization and realization of cashless society.
▌ As part of that, GoI promotes use of electronic payment in all aspects of civic life such as public transportation, retail stores, and gas stations, etc.
*1: RFID tag base electronic toll collection system operated by the National Highway Authority of India (NHAI) Exchange rate : 1 USD – 70.12 INR
2-1-4. Survey for trends of introduction status for payment service besides transportation use
Trend of cashless society in India
Target # Policy content
Railway
1GoI is providing free accidental insurance cover of up to USD 14,297 for passengerspurchasing online tickets of Indian Railways (IR)
2IR provides 5% discount applied to paid services e.g. catering, accommodation etc. being offered by railways through its affiliated entities/corporations through electronic payment
3From 1st June 2017, GoI had started providing discount of up to 0.5% for commuters paying through electronic payment for monthly or seasonal tickets of Suburban Railways
Highway 4In the year 2016-17, the commuters were rewarded 10% discount over the usage of RFID card or FasTag*1 at toll plazas for payment
Retail 5Less than USD 1.43 will be charged by the public sector banks for renting PoS terminals, Micro ATMs & mobile POS to the smaller merchants
Petrol station
6The Petroleum public sector units (such as Indian Oil etc.) is offering 0.75% discount ofsale price to the commuters paying through electronic payment
Government Initiatives for Promoting Digital & Cashless Economy
54
▌ Mobile QR code payment is growing rapidly mainly at retail stores in urban area, but not same in transit domain as it’s use scene is limited to ticket purchase and recharge to smart card etc.
▌ Although it is expected the expansion of mobile payment use in future, smart card would be still mainstream of transit payment as there are network instability and performance in rush hour in mobile payment.
2-1-4. Survey for trends of introduction status for payment service besides transportation use
Trend of mobile payment in India
# Company Founded Year Overview
1 Paytm 2010
Largest mobile payment service provider in IndiaMore than 230 million users, 10 million merchantsPayment for mobile phone charge, utility and Retail stores etc.Recharge service for smart card in Delhi, Mumbai, Hyderabad metros
2 Mobikwik 2009
Major mobile payment service providerMore than 100 million users, 3 million merchantsPayment for mobile phone charge, utility and Retail stores etc.Recharge service for smart card in Mumbai metro
Major mobile payment service provider in India
Social background for mobile payment usage acceleration
No. of smart phone users240M (2015) → 520M (2020)
Population1.25B (2015) → 1.35B (2020)
No. of Internet users300M (2015) → 650M (2020)
55
▌ National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments in India which was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks Association (IBA) to establish robust payment platform nationwide.
▌ NPCI developed UPI as the common payment platform for financial institutions (FI) and mobile payment service providers, and provides payment services such as smartphone applications running on UPI and cooperation with Aadhaar - Indian national ID system etc.
# Service Service contents Started from
1Unified Payments Interface(UPI)
Mechanism that carries out remittance / in-store payment etc. from bank account by using smartphone
Provides supporting application respectively to approx. 150 FIs Use Virtual Payment Address acquired from the application Support dynamic QR code including individual transaction info.
Apr, 2016
2Bharat Interface for Money(BHIM)
NPCI smart phone application for remittance / payment / billing using UPI
Manages multiple bank accounts integrally Available for more than 90 FIs
Dec, 2016
3BHIM AadhaarPay
Payment service using Aadhaar fingerprint authentication and UPI Merchants set up smart phone application and authentication device Users pays by direct debit designating FI which owns user’s account
and perform fingerprint authentication by national ID
Dec, 2016
4 Bharat QR
Unified QR code standard that NPCI, FIs, VISA and Mastercardparticipate and formulate
Users read QR code at retail store by smart phone application provided by FI and pay through bank account or account-linked card
Support static QR code not reflecting individual transaction info.
Feb, 2017
2-1-4. Survey for trends of introduction status for payment service besides transportation use
Trend of payment service in India: NPCI
56
2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI
Possibility of utilizing big data with AI technology
▌ By multiplying data obtained from common mobility card with other data such as weather and route search data, it enables not only to improve public transportation services but also to ease traffic congestion, reduce air pollution and revitalize the regional economy.
Other DataOperation and User Data
Modal shift promotionby Park & Ride service
Schedule Optimi-zation
Eventannouncement
data
Weather dataOperation data
Route search data
Resource Allocation Optimi-zation
Revitalize local economy
Business planning based on travel
demand forecast
Reduce traffic congestion and air pollution
Improve public transport service
Forecast of passenger movement demand / Operation optimization by dynamic pricing by big data utilization
Forecast / Warning of Congestion
Commuter pass sales data
OD data *1
Ticket sales/ reservation
data
SNS data
Targeting advertisement
Other card usage data
Other data like GPS etc.
*1: Source: An Effective Use of Tokyo Metro Passengers Flow by Visualization of Smart Card Ticket ‘PASMO’ Origin-Destination Data for Public Transport Network to be Sustainable(https://pdfs.semanticscholar.org/dfc6/1e2ed058c83e48fe3436d0d78422beed8031.pdf)
57
▌ Big data accumulated from transportation common mobility card business can be utilized to prevent accidents due to congestion at big event by forecasting sudden movement demand. Shanghai Metro is doing the same efforts at the time of football game.
▌ There will be the similar needs as the world's biggest cricket stadium will be built in Ahmedabad.
Case of Shanghai Case of Ahmedabad
*1: Source: Shanghai Government(http://www.shanghai.gov.cn/shanghai/node27118/node27968/node26489/userobject22ai36135.html)*2: Source: Zhiyuan, H., Liang, Z., Ruihua, X., & Feng, Z. (2017, September). Application of big data visualization in passenger flow analysis of Shanghai Metro network. In Intelligent Transportation Engineering (ICITE), 2017 2nd IEEE International Conference on (pp. 184-188). IEEE.*3: Source: Gujarat Cricket Association (https://www.gujaratcricketassociation.com/page/motera-stadium)*4: Source: MEGA「Route Map」( http://www.gujaratmetrorail.com/route-map-2/)
Hongkou Football Stadium*1
Metro Passenger Flow Simulation*2
The world's largest cricket stadium "Sardar Patel Gujarat Stadium (Motera Stadium)“, which has 63 acres (more than five times the size of the Tokyo Dome) and 110,000 people capacity, will be built and accessed from the MEGA station.
Motera Stadium Station
Shanghai Metro is carrying out operation plan and personnel allocation according to the travel demand at the event such as soccer game and concert etc.
Motera Stadium*3
MEGA Route Map *4
2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI
Possible application in Gujarat state (1/3)
58
▌ Analyzing Big Data such as smart card usage, weather, road traffic information, etc. dynamically realizes optimal pricing and matching of parking lots and cars to prevent traffic congestion.
▌ Both Ahmedabad and Surat operate parking lots which can expect effective Park & Ride service with Big Data.
Modal shift promotion by Park & Ride service Reduce congestion and air pollution
2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI
Possible application in Gujarat state (2/3)
City Centre
Park & Ride
Station
Usage Data
Dynamic PricingMatching (Reservation)
Transportation Data Weather Data
During congestion,set high price to lead cars to the suburbs
To improve revenues and occupancy rates,set high price during congestion, while set low price when no congestion
Optimize parking lot price by analyze Big Data to predict traffic situation with AI
At the Urban Mobility India Conference & Expo on November, 2016, CEPT
University proposed future possibility of Park & Ride service in Ahmedabad.
59
▌ Dynamic pricing by big data analysis enables to differentiate prices of public transportation depending on peak and off season, and to set prices according to ticket reservation situation, which leads to balance demand vs. supply and to ease congestion and improve service quality.
▌ There will be possibility of introduction ticket reservation system utilizing dynamic pricing engine for "Mumbai-Ahmedabad High Speed Railway (MAHSR) Corridor“ and new service development using big data for revitalizing regional economy around new stations.
*1: Source: Nomura Research Institute *2: Source: JETRO (https://www.jetro.go.jp/biz/areareports/2018/9fe93efaf0614b86.html)
Route map of MAHSR(plan)*2
• JICA ODA loan agreement for “Project for Construction of Mumbai–Ahmedabad High Speed Rail (I)”(Approx. 89.5 billion JPY) was signed in September, 2018. It is to construct more than 500 Km railway between Mumbai and Ahmedabad.
• In order to enhance the convenience of the high-speed railway, various policies such as development of the area around the station and improving access to the station are being studied with involving local governments.
Mumbai-Ahmedabad High Speed Railway Corridor
2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI
Possible application in Gujarat state (3/3)
Industry Issue Solution
PublicIn tourist spots, traffic jams occur on weekends and sightseeing seasons
Depending on the traffic congestion, charge to cars to alleviate congestion (road pricing)
RetailFresh food items are still unsold at near closing time
Sell items with big discount sales
Airline
Too many travelers in long vacation, etc., while much less travelers in a quiet period
Increase airline fares during the busy season to shift demand to quiet seasons
Hotel
In sightseeing spots, demand concentrated on weekends and consecutive holidays, while it is quiet on weekdays
Depending on situation, set a discount accommodation plan for weekdays only, induce demand on weekdays
Application example of dynamic pricing in each industry *1
1. Project overview
1-1. Background and objective
1-2. Target area of the study
1-3. Methodology of the study
1-4. Project structure
2. Results of the project
2-1. Local needs and issues towards Common Mobility Card expansion
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
2-1-2. Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion
2-1-3. Survey for trends of local players which provides transportation IC card payment service
2-1-4. Survey for trends of introduction status for payment service besides transportation use
2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI
2-2. Business feasibility
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
2-2-2. Examination on issue and solution related to localization of proposed technology formaking business model
2-2-3. Examination of strategic issues and countermeasures
2-2-4 Business model development and its elaboration
2-3. Implementation of reporting seminar
2-3-1. Reporting seminar in Gujarat
Table of contents
61
▌ Set the themes to be required in Gujarat state based on survey results like central and state government’s policies, technical and commercial issues of NCMC.
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
Proposed activities for Gujarat state
Central government bodies like MoHUA, MeitY, MoF and NITI Aayog promotes standardization of NCMC eco system to reduce implementation cost and realization of interoperability.
RuPay NCMC specification was formulated by NPCI and applied to some cities like Ahmedabad and Surat, but it’s not feasible to realize interoperability because of insufficient definition of transit service data format.
Exclusive contracts between bank and municipal corporation for card issue right inhibits interoperability realization.
Smart card users are not increasing as much as expected because of limited usage scenes and security concerns in Ahmedabad and Surat.
Although smart cards introduced in Ahmedabad and Surat adopt the same data format and compliant with NCMC, they are not interoperable because of exclusive contracts with banks for card issuing, Coordination with Metro is also required in the future to achieve city-wide interoperability.
State government initiative is necessary to realize interoperability considering the future expansion of smart card to HSR, metro, local train and other cities’ public transportations.
Gujarat state promotes the policy “Mobility Led Urban Development” and makes efforts on realizing seamless urban transportation and easing traffic congestion through parking environment improvement.
There are some tenders that bank, card host system vendor and AFC vendor co-bid and try to recover their investment by revenue share model with PTO, but its profitability is questioned.
Mobile payment is now rapidly expanding as new option mainly at retail stores in urban areas and introduced to transport use limitedly like ticket purchase and smart card top-up. For the time being, smart card remains as main media for transport payment considering network instability and performance in rush hour etc.
Survey for transportation IC
cards in other states, IR and NHSRCL which would be candidate for
business expansion
Survey for transportation IC
cards in Ahmedabad, Surat cities in Gujarat state
Clarification of implementation
policy of interoperability coordinated by central, state and municipal governments
Expansion of smart card
usage scene to realize smooth
transit
Urban transport
optimization and urban
development utilizing
transport data
Survey for trends of local players which
provides transportation IC card payment
service
Survey for trends of introduction status for
payment service besides transportation use
Proposed activitiesfor Gujarat state
Survey results
Examination on potential utilization of big data accumulated
in transportation common card business
using AI
It can contribute not only to transit service improvement but ease of traffic congestion, air pollution control and regional economy vitalization by combining smart card data and other data like weather, route search history etc.
Many smart cards are introduced to each city, and some states have multiple cards same as Gujarat state.
P25~27
P28~29
P30
P44~48
P31~34
P35~37
P40~43
P52
P53
P55
P57~60
62
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
To-be and business opportunities
▌ Through supporting themes required in Gujarat state based on smart card and AI technologies and experiences in Ahmedabad/Surat cities, there would be business opportunities leading to dissemination of interoperability and realization of urban development utilizing its data.
Clarification of implementation
policy of interoperability coordinated by central, state and municipal governments
Expansion of smart card
usage scene to realize smooth
transit
Urban transport
optimization and urban
development utilizing
transport data
Proposed activitiesfor Gujarat state
State/city policy and plan become clear against GoI’sstandardization policy• Migration policy and
plan for existing NCMC implemented operators
• Scope and Plan for new NCMC implementation
NCMC is expanded to major transportations and widely accepted by citizens based on the above policy and plan
Government works on improving/innovating operation and management of transportations and new business creation in urban development utilizing accumulated transit data
To-be
(Government activities)• Review on exclusive contract with bank and compensation• Card data format (new standard from central gov. vs. existing)• NCMC implementation plan to Gujarat state and each city
Support activity for policy and plan makingbased on experience and knowledge in Ahmedabad/Surat
Expansion of smart card base fare collection systemto other cities and intercity buses
Expansion of smart card base fare collection systemto new operators like parking, auto rickshaw and ferry etc.
Schedule optimization by analyzing operation and user data
Target marketing based on user’s behavior
Urban transport dashboard system implementationand operation & maintenance
Expected business opportunities
Business opportunities
63
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
Necessity of Common Platform
▌ NCMC initiative is considered to improve convenience of users and promote cashless economy.
▌ The government needs to bear the cost for implementing, operating, and maintaining new transport operators’ AFC system as a current business model, which may take time to develop new public transportations and as a result, it will be an obstacle for realizing the modal shift.
Various Cardsare in use
Cost covered by Gov
Reduced user convenience
Operation and maintenance cost for AFC system of each PTO
AFC system upgrade to adopt new technology if necessary
AFC system implementation cost of each PTO
Bring various cards
Inconvenience during transit
Public transportation means are not sufficient
Users are not willing to usepublic transportation
Cost and time are required to start new public transportation modes
Modal shift is not realized
Serious congestionand
air pollution
Issues which need additional countermeasures( ⇒Cost mitigated by common platform)
NCMC initiative and One Nation One Card policy can be a solution for this issue
64
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
Measures to Promote Card Use (Example of Other Countries)
Card Name
City/Start year
Dissemination situation
Promotion Measures
Expansion of use for purposes other than public transportation
Discount according to user attribute
Transit Discount
Oyster Card
London/2003
90% of the use of subway, bus, and railway is paid by Oyster Card (0.5~0.7 million cards are issued monthly).
It cannot be used for other than public transportation.
Several discount are available (30% discount for student in London, free for handicapped and elderly people, discount for unemployed, retired army, etc.)
Transit discount is available as “Hopper fare”. For transit within one hour, one ride fare is discounted.
Octopus Card
HongKong/ 1997
More than 35 million cards are issued and 99% people in Hong Kong use it.
Tunnels and road tolls, parking lots, admission cards to houses and commercial facilities, educational institutions, shopping, etc.
Discount for student is available though there is no discount for children card and elders card)
Multiple transit discount is available (ex. for subway and express train transit within 1 hour, subway fare is free).
T-moneyCard
Seoul/2004
More than 37 million cards are issued. In the capital area, 98.9% and 96%usage in subway and bus respectively.
Taxi, convenience store, fast food, shopping, etc.
Several discount are available (basic subway charge discount for general card holders, about 40% discount for youth card holders, etc.)
Multiple transit discount is available (ex. fare is discounted between the bus, subway, metropolitan Korean railroad when transferring within 30 mins)
JanmitraCard
Ahmeda-bad/2017
0.16 million cards are issued.
Parking lot, tax payment, shopping, restaurant, Kankaria lake entry etc.
10% discount for card holder, 40% discount for student and handicapped person
“Transit Discount" has not been introduced.
▌ Other countries representative smart cards provide “transit discount” as promotion policy, but Gujarat state is not currently doing the same, which would be effective measure of promotion.
▌ Common platform enables transit discount introduction without much investment from multiple operators.
65
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
Example of Efforts Toward Realization of Modal Shift (Example of Jakarta)
▌ In order to realize modal shift, various measures are required to enhance the convenience of public transport while limiting the use of vehicles. To implement various measures, it is important to make effective use of limited resources rather than each city and operators individually takes own measures.
Veh
icle
Pu
blic
Tra
nsp
ort
Reduction of Use
Ride Share
No Use Day
Time) Road Pricing
Road) Traffic Info.Load-
Leveling
Bus etc.
BRTS
Providing Public
Transport Modes
MRT/LRT
Seamless transfer
Seamless fare adjustment
Enhancing Service Level
Seamless Operation
Operation info.
UX (User Experience)
…
Measures for Modal Shift Example of Jakarta
3 on 1
Number plate system
ERP system (under planning)
Smartphone Application (google map)
【Asset Management】“Keeping asset availability”
【Passenger Management】“Meeting passenger’s demand:
wants to go to its destination by reasonable price,within short time, and w/o stress.”
To be considered in the Future
Implemented
Under construction
66
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
Overall image of technical proposal
▌ Smart City Data Platform provides cloud-base fare collection system to realize smart card interoperability and analysis engine to analyze collected data and various application utilizingthe result of analysis as a common platform in Gujarat state and cities.
Smart City Data Platform
Smart card base fare collection system (on cloud)Smart card base fare
collection system (on premises)
Big data analytics by AI engine
Smart service platform and APIs
ScheduleOptimization
DriversProfiling
PreventiveMaintenance
TrafficMonitoring
SmartInterchange
User BehaviorAnalyzer
BusinessIntelligence
IntegratedMulti-ModalTransit Hub
AttractivePublic Transportation
ComprehensiveTraffic Control
67
2-2-2. Examination of issue and solution related to localization ofproposed technology for making business model
▌ In response to local cost constraints, it is required to reduce the burden of initial investment and total cost by providing a cloud system based on a compact system developed for Japanese government-designated cities.
▌ As for application scenarios utilizing AI, hypotheses and verifications should be conducted in collaboration with local solution development base and university etc. to respond properly to needs of local social problem solution.
Issues for localization SolutionsServices by
Smart City Data Platform
Smart card base fare collection system
(on cloud)
Big data analytics and utilization by AI engine
A large-scale system used in Japan does not match India in terms of cost
Network infrastructure is not so reliable as in Japan
Payment services and technological innovation are rapidly progressing in India (Environment is likely to change).
Base on a compact system for ordinance-designated cities in Japan and reduce operation cost by training and utilizing local human resources
System design considering local environment, such as multiplexing communication networks, optimization of data size, etc.
System design on the premise that new technologies are to be utilized
Practical data use requires to understand local needs and reality of each region (The needs are not the same as Japan)
For data analysis, human resources with certain skills are also required (ex. to make a hypothesis considering implication of data)
Grasp needs and verify hypothesis through collaboration with local solution development base
Conduct enough training and OJT to nurture local human resources who understand both data utilization with AI and local context collaborating with local academic institution etc.
68
2-2-3. Examination of strategic issues and countermeasures
Collaboration with government to utilize data
▌ In order to contribute to urban development in Gujarat state while not only providing IT system but also creating business utilizing data, it is important not to participate in tender as vendor but to provide service by joint organization closely collaborating with the government.
Government
PTO*1 PTO
Government
PTO
Joint Management Organization
PTO
NEC
Invest Invest
Service
Existing tender-base business Joint investment with government
Service
Service
NEC
IT Service(tender)
IT Service(joint operation)
The ownership of system and data is basically in government or transport operator, so it is not easy for vendor to explore new data utilization
IT vendors will consolidate the data utilized for urban development and there may be risk of concern or repulsion of "Data Colonization"
By participating jointly with government-funded organizations, it becomes easier to conduct discussions such as creation of new services using technology such as AI
Government-funded organization will be an operation form easily accepted from local by its supervising systems and data
NEC has established a DMICDC Logistics Data Services Limited in collaboration with the Delhi Mumbai Industrial Corridor Development Corporation and is implementing similar efforts
Strategic issues:Data usage restrictions and concerns
Countermeasure:Joint operation with the government
*1: Public Transport Operator
69
2-2-3. Examination of strategic issues and countermeasures
Example of Joint Investment by Government and Private Entity: DIMTS Overview
Transport Planning
Transaction Advisory
Operations Management
Infrastructure Development &
Engineering
Intelligent Transport Systems Railway Engineering
Transportation Technology and IT Solutions
• Founded:April, 2006 by GNCTD and IDFC Foundation
• Headquarters:New Delhi
• Key Person: M Ramsekhar (MD & CEO)
• Clients:
Department of Transport, GNCTD
Delhi Transport Corporation (DTC)
New Delhi Municipal Council (NDMC)
Municipal Corporation of Delhi (MCD)
Public Works Department (PWD), GNCTD
Mumbai Metropolitan Region Development Authority (MMRDA)
• Members:
International Association of Public Transport (UITP)
Institute of Urban Transport (India)
Consulting Engineers Association of India (CEAI)
• Partners:
Transportation Research and Injury Prevention Programme(TRIPP)
Transport Research Laboratory (TRL)
United Nations Office for Project Services (UNOPS)
*1: GNCTD: Government of National Capital Territory of Delhi *2: Source: DIMTS Website (https://www.dimts.in)
▌ Delhi Integrated Multi-Modal Transit System Ltd. (DIMTS) is an equal equity (50:50) joint venture of GNCTD*1 and IDFC Foundation with a focus on urban transportation.
▌ DIMTS provides Concept to Commissioning, Consultancy, Intelligent Transport System solutions and Urban Transport asset management services*2.
DIMTS Overview DIMTS Services
70
2-2-3. Examination of strategic issues and countermeasures
Example of Joint Investment by Government and Private Entity: DIMTS Project
▌ DIMTS operates both public transportation such as BRT and transportation IC card business.
▌ An example of DIMTS projects is the introduction of electronic ticketing machines and AFC system to the Department of Transportation Government of National Capital Territory of Delhi.
Major Project Areas for DIMTS
BRT Urban RoadTransport
Vehicle Tracking Ticketing Smart card Railway Transit Hub
Electronic Ticketing Machines (ETMs)
Automatic Fare Collection System
(AFCS)
As part of the Automatic Fare Collection System (AFCS) project, DIMTS has developed customized Electronic Ticketing Machines for the first phase of the AFCS project
The ETMs offered by DIMTS are smart card enabled devices with inbuilt GPRS*1 modules
Govt. of NCT of Delhi (GNCTD) has nominated DIMTS as the nodal agency for implementing theAutomatic Fare Collection System (AFCS) Project
The Project consists of designing, developing, implementing, operating and maintaining and facilitymanagement of Automatic Fare Collection System and value added services based on smart cardswhich will be acceptable in multiple travel modes including DTC buses, private buses, metro rail,Light Rail Transit, Mono Rail
Client : Transport Department, Government of NCT and Delhi (GNCTD)
Client : Transport Department, Government of NCT and Delhi (GNCTD)
*1:GPRS is the 2.5th generation data communication system (2.5G) using the "GSM" (2G) network
71
2-2-3. Examination of strategic issues and countermeasures
Example of Joint Investment by Government and Private Entity: UMTCL Overview
▌ Urban Mass Transit Corporation Limited. (UMTCL) is a unique partnership between Ministry of Housing and Urban Affairs (MoHUA), Government of Andhra Pradesh (GoAP), Andhra Pradesh State Road Transport Corporation (APSRTC) and Infrastructure Leasing and Financial Services Limited (IL&FS).
▌ UMTCL provides advisory services for the entire project life cycle ,i.e., from conceptualization, planning and design to implementation, operation and maintenance of urban transport projects *1.
Founded by: Ministry of Housing and Urban Affairs Government of Andhra Pradesh Andhra Pradesh State Road Transport
Corporation Infrastructure Leasing and Financial Services
Limited (IL&FS)
Headquarters: New Delhi Key Person: Mr. Ajai Mathur (MD & CEO) Clients:
Surat Municipal Corporation Kochi Metro Rail Limited Rajkot Municipal Corporation Ahmedabad Urban Development Authority Calcutta State Transport Corporation Andhra Pradesh State Road Transport
Corporation
UMTCL Overview UMTCL Services
Planning & Designing of Footpaths
Accessibility Planning for Metro Stations
Accessibility & Mobility Planning for various transit
Planning & Implementation of Intelligent Transport Systems
Parking Policy Formulation
*1: Source: UMTCL Website (https://www.umtc.co.in)
72
2-2-3. Examination of strategic issues and countermeasures
Example of Joint Investment by Government and Private Entity: UMTCL Project
▌ UMTCL provides various services in the urban transport planning field, for example, Kochi Metro Rail Limited (KMRL) in Kerala state and BRTS in Amritsar city in Punjab state*1.
UMTCL Projects
Client: Punjab Bus Metro Society
Location: Amritsar City in Punjab State
Services from UMTCL: Design , Securing approvals, tendering and project management consultancy
Project Overview: 31 Km Bus Rapid Corridor was proposed across Amritsar
Key Offerings from UMTCL: Complicated road over bridge was designed for
connecting North & South part of Amritsar City A public bike sharing program along with cycle
tracks and auto rickshaw stops was designed Project Cost:
USD 70.60 million
Client: Kochi Metro Rail Limited
Location: Kochi City, Kerala State
Services from UMTCL: Design transit oriented development plan across major transit by corridors Geographic Information System (GIS) based mapping
Key Offerings from UMTCL: Designing multi modal integration, non-motorized
transport & direct connectivity routes for the commuters
Revenue generation model is the key component considered before the design
Additional Projects awarded by Kochi Metro Rail Limited to UMTCL: Comprehensive Mobility Plan & Parking Master Plan
Location:Greater Kochi
Key Offerings from UMTCL: Design suitable transport modes covering cycle, ferry,
bus, metro & walking zones
*1: Source: UMTCL Website (https://www.umtc.co.in)
Kochi Metro Rail Limited Amritsar BRTS
(Exchange rate : 1 USD – Rs. 70.12)
73
2-2-4. Business model development and its elaboration
Supposed Revenue Model
▌ 3 revenue models can be considered according to ownership of system/data and investment capacity – ①System impl. model for large scale smart card fare collection system, ②Service model for mid-small scale, and ③SPV model for data utilization scenario.
Government/Transport operator
NEC
SystemImpl. andO&M
SystemImpl. andO&M cost
Government/Transport operator
NEC
CommonPlatformService
Service usageFee
Government/Transport operator
JointManagement Organization
CommonPlatformService
Service usageFee
SystemImpl. andO&M
SystemImpl. andO&M cost
NEC
Government / transport operator as the service management body procuring vendor to build/ operate the common platform
Suitable for large cities with great command and control authority despite huge burden and investment required
NEC as the service management body to build/operate the common platform by own investment and collect service usage fee
Suitable for mid-small cities as less burden and rapid implementation available
System and data managed under vendor control
Government / transport operator and NEC as joint management body where both parties equally invest to operate the service
Maximum utilization of vendor knowledge with less investment
Possibility of limited authority of decision making by government / transport operator
System impl. model Service model SPV model
Large scalesmart card fare collection
Mid-small scalesmart card fare collection
Data utilization
74
2-2-4. Business model development and its elaboration
Direction of future activities
▌NEC aims to establish the business model for interoperability and its data utilization in Gujarat state and expand it to other state/cities and even adopt to high-speed railway ticketing system.
NHSRCL ticketing system(Submitted EOI in June, 2018, Under RFP preparation)
Expansion to other state/cities
Upgradation of business model
Achieve interoperability among Ahmedabad, Surat and Vadodara
Approach to tender for ticketing system in line with government policy to connect high-speed railway and urban transport smoothly at those major stations as Integrated Multi Modal Transit Hub
Approach with differentiating factors such as smart card base ICT system assumed its standardization led by central government and sophistication of urban transport and city development utilizing data
Candidate such as Maharashtra and Uttar Pradesh states as multiple smart cards introduced same as Gujarat
Expansion of data utilization scene Contribution from urban transport
to urban development
Establish business modelin Gujarat state
Ahmed-abad
Surat
Vadodara Rajkot
P
Interoperable Smart Cities Appeal the effect through PoC in expansion
candidate cities and modes(intercity bus, parking, auto rickshaw etc.)
Sophistication of Urban Transportation Utilizing Data
1. Project overview
1-1. Background and objective
1-2. Target area of the study
1-3. Methodology of the study
1-4. Project structure
2. Results of the project
2-1. Local needs and issues towards Common Mobility Card expansion
2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state
2-1-2. Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion
2-1-3. Survey for trends of local players which provide transportation IC card payment service
2-1-4. Survey for trends of introduction status for payment service besides transportation use
2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI
2-2. Business feasibility
2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues
2-2-2. Examination of issue and solution related to localization of proposed technology for making business model
2-2-3. Examination of strategic issues and countermeasures
2-2-4 Business model development and its elaboration
2-3. Implementation of reporting seminar
2-3-1. Reporting seminar in Gujarat
Table of contents
76
2-3-1. Reporting seminar in Gujarat (1/2)
▌ NEC conducted the reporting seminar inviting key stakeholders like Principal Secretary of Urban Development, Urban Housing Department, Government of Gujarat, Deputy Commissioners from Ahmedabad and Surat Municipal Corporations.
Title Reporting Seminar on Feasibility Study of Common Mobility Card Business in Gujarat, India
Date & Time Feb 1, 2019 (Fri) 10:00~14:00
Location Hyatt Regency Ahmedabad
Program
10:00~10:30 Welcome Address10:30~11:15 Inaugural Session11:15~11:30 Networking Tea Break11:30~12:00 Presentation by Industry Expert12:00~13:00 Presentation by NEC13:00~14:00 Networking Lunch Break
Participants
Total 30 persons:Government of Gujarat, Ahmedabad Municipal Corporation, Surat Municipal Corporation,Gujarat Metro Rail Corporation, Gujarat Industrial Development Corporation, CEPT University, World Resources Institute India, ICICI Bank, PricewaterhouseCoopers Private Limited, JETRO
NEC received the encouragement letters from Government of Gujarat (GoG) and Surat Municipal Corporation (SMC) that NEC would contribute their urban development and transport improvement by utilizing smart card and data analysis technologies. Expected to receive the same from Ahmedabad Municipal Corporation (AMC).3 key bodies - GoG, AMC and SMC could share the recognition towards Common Mobility Card realization.
77
2-3-1. Reporting seminar in Gujarat (2/2)
▌ NEC stated the proposal based on the survey result to Government of Gujarat (GoG) and received positive feedbacks from state/city government stakeholders.
Speech/Presentation Major Remarks
Welcome AddressNEC
Expression of appreciation for the stakeholders’ support Introduction of NEC's vision, overseas and Japanese urban transport initiatives over 30
years, and experiences in India mainly in Gujarat state as the background of this project.
Introductory SpeechAhmedabad Municipal Corporation
City government initiative for NCMC in bus/BRT, currently issuing 2.2 lakhs Janmitracards
AMC supports NEC to realize Common Mobility Card including metro, other modes
Keynote Address from Chief GuestGovernment of Gujarat
Expression of appreciation for holding the seminar as smooth mobility is important factor of smart city
State government initiative for promoting station area development and revenue loss burden policy etc.
Expectation on NEC technology and solution to play crucial role for Common Mobility Card realization in Gujarat state
Presentation by Industry ExpertPricewaterhouseCoopers Pvt. Ltd.
Introduction of NCMC overview comparing the traditional closed loop cards only available in specific transportation
Presentation by NECNEC
Report the current issues and expected direction to achieve Common Mobility Card in Gujarat state with case studies in Japan and overseas
Appeal of data utilization possibility as well to contribute Mobility Led Urban Development led by GoG
78
Abbreviations (1/2)
# Abbreviation Formal Name
1 ADB Asian Development Bank
2 AFC Automatic Fare Collection
3 AI Artificial Intelligence
4 AIIB Asian Infrastructure Investment Bank
5 AJL Ahmedabad Janmarg Limited
6 AMC Ahmedabad Municipal Corporation
7 AMTS Ahmedabad Municipal Transport Service
8 API Application Program Interface
9 APSRTCAndhra Pradesh State Road Transport Corporation
10 ATM Automated/Automatic Teller Machine
11 AUDA Ahmedabad Urban Development Authority
12 BHIM BHarat Interface for Money
13 BOQ Bill Of Quantity
14 BRTS Bus Rapid Transit System
15 CBT Card Base Ticketing
16 CCPS Common Card Payment System
17 C-DACCentre for Development of Advanced Computing
18 CEO Chief Executive Officer
19 CHS Card Host System
20 CONCERTCOuntrywide Network of ComputerisedEnhanced Reservation and Ticketing
21 CSTC Calcutta State Transport Corporation
22 CTO Chief Technical Officer
23 DIMTSDelhi Integrated Multi-Modal Transit System Limited
24 DMICDCDelhi Mumbai Industrial Corridor Development Corporation
25 DTC Delhi Transport Corporation
26 EMV Europay, Mastercard, and Visa
27 EOI Expression Of Interest
28 ERP Enterprise Resources Planning
29 ETM Electronic Ticketing Machine
# Abbreviation Formal Name
30 FI Financial Institution
31 GDP Gross Domestic Product
32 GIDC Gujarat Industrial Development Corporation
33 GMRC Gujarat Metro Rail Corporation
34 GNCTD Government of NCT and Delhi
35 GoAP Government of Andhra Pradesh
36 GoG Government of Gujarat
37 GoI Government of India
38 GPS Global Positioning System
39 GSRTC Gujarat State Road Transport Corporation
40 HMC High Mobility Corridor
41 HSR High Speed Railway
42 IAS Indian Administrative Service
43 IC Integrated Circuit
44 ICT Information and Communication Technologies
45 IL&FSInfrastructure Leasing and Financial Services Limited
46 IoT Internet of Things
47 IR Indian Railways
48 IRCTC Indian Railway Catering and Tourism Corporation
49 ISO/IECInternational Organization for Standardization / International Electrotechnical Commission
50 ITS Intelligent Transportation System
51 JETRO Japan External Trade Organization
52 JICA Japan International Cooperation Agency
53 KMRL Kochi Metro Rail Limited
54 KYC Know Your Customer
55 LRT Light Rail Transit
56 LVP Low Value Payments
57 MAHSR Mumbai-Ahmedabad High Speed Railway
58 MD Managing Director
79
Abbreviations (2/2)
# Abbreviation Formal Name
59 MEGAMetro-Link Express for Gandhinagar and Ahmedabad
60 MeitYMinistry of Electronics and Information Technology
61 METI Ministry of Economy, Trade and Industry
62 MoF Ministry of Finance
63 MoHUA Ministry of Housings and Urban Affairs
64 MoR Ministry of Railways
65 MoRTH Ministry of Road Transport and Highways
66 MoUD Ministry of Urban Development
67 MRT Mass Rapid Transit
68 MTS Mass Transit System
69 NACH National Automated Clearing House
70 NCMC National Common Mobility Card
71 NCR National Capital Region
72 NFC Near Field Communication
73 NHSRCLNational High Speed Railway Corporation Limited
74 NIC National Informatics Centre
75 NITI Aayog (Hindi for Policy Commission)
76 NMMC Navi Mumbai Municipal Corporation
77 NPCI National Payments Corporation of India
78 O&M Operation and Maintenance
79 OD Origin-Destination
80 ONOC One Nation One Card
81 P&R Park and Ride
82 PoC Proof of Concept
83 POS Point of Sales
84 PPI Prepaid Payment Instruments
85 PTO Public Transport Operator
86 PwC PricewaterhouseCoopers Private Limited
87 QR Quick Response
# Abbreviation Formal Name
88 qSPARCQuick Specification for Payment Application of RuPay Chip
89 RBI Reserve Bank of India
90 RFID Radio Frequency IDentifier
91 RFP Request For Proposal
92 RMC Rajkot Municipal Corporation
93 RuPay Rupee Payment
94 SBI State Bank of India
95 SCADL Smart City Ahmedabad Development Limited
96 SCDP Smart City Data Platform
97 SEZ Special Economic Zone
98 SMC Surat Municipal Corporation
99 SMS Short Message Service
100 SPV Special Purpose Vehicle
101 SV Stored Value
102 UMTCL Urban Mass Transit Corporation Limited
103 UN-HABITAT United Nations Human Settlements Programme
104 UP Uttar Pradesh
105 UPI Unified Payments Interface
106 UTIITSLUTI Infrastructure Technology And Services Limited
107 UX User eXperience
108 VMC Vadodara Municipal Corporation
109 VP Vice President
110 WB World Bank
111 WRI World Resources Institute
112 (MLUD) Mobility Led Urban Development
113 (IMMTH) Integrated Multi Modal Transit Hub
80
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