Table 5 Cost of Implementing different Congestion Pricing Schemes in Mumbai

● The revenue from congestion pricing has been estimated by taking the deterrent congestion charge as deduced in chapter 3 for different modes (exempting buses and cycles)

Table 5 Cost of Implementing different Congestion Pricing Schemes in Mumbai Cost Heads Corridor Based- WEH Area Based- Island City of Mumbai

Capital Cost Roadside Infrastructure Cost per lane (₹) Roadside RFID Equipment Cost per lane (₹) Roadside ANPR Equipment cost per lane (₹) 1.5 million

1.5 million

0.3 million 1.5 million

1.5 million

0.3 million

No. of Gantry Points 6 4(on WEH) + 2(on connecting roads at Andheri Junction) 7

No. of Lanes (including both directions for WEH and Island City) Total gantry lanes = 36 Total gantry lanes = 40

(4-lanes per direction on Gantry 2 and 3 on WEH 4-lanes each on gantry 1 (southbound) and 6 (northbound) on WEH 3-lanes per direction on gantry 4 and 5 on connecting roads near Andheri) (4-lane per direction on Gantry 1 on Bandra-Worli Sea Link 2-lane per direction on SV Road 3-lane per direction on Sion-Bandra Link road 2-lane per direction on LBS road 2-lane per direction on Sion flyover 3-lane per direction on Eastern Express Highway 4-lane per direction on Eastern Freeway)

Total Roadside Infrastructure Cost (₹) 119 million 132 million

O & M Cost Total Cost of off-road infrastructure (₹) No. of OBUs (vehicles without RFID Units (75%)) Cost of 1 RFID tag (₹) Total OBU Cost (₹) Total Capital Cost (₹) O & M Cost (15% of capital cost) (₹) 30 million

25,144,80

200 503 million 652 million 98 million 30 million

25,14,480

200 503 million 665 million 100 million

No. of vehicles willing to pay in a Day (both northbound and southbound) Congestion Charge (changes by mode, time and direction) 1,26,435

₹10-40 for two-wheeler ₹25-65 for cars, taxis and autos ₹50-130 for LCVs 3,58,748

₹10-40 for two-wheeler ₹25-65 for cars and taxis ₹50-130 for LCVs

Per day Revenue (₹) 8 millions 15 millions

Per year Revenue74

Capital Cost Recovery Period Net Revenue (subtracting recurring cost) after cost recovery period ₹ 1.8 billions (25.8 million USD) 23 weeks ₹ 1.73 billion (24.4 million USD) ₹ 3.6 billions (50.6 million USD) 14 weeks ₹ 3.49 billions (49.18 million USD)

The table above presents a high-level analysis. The actual congestion charge will vary depending on the number of gantries a vehicle crosses in a day and the level of congestion at each gantry. The high-level estimates are sufficient to see that congestion pricing is financially viable. The primary goal of congestion pricing is to reduce congestion and associated concerns such as pollution, carbon emissions, etc, and not to earn revenue. Therefore, it should be implemented even if it does not result in a substantial revenue to the city. However, the above assessment shows that capital expenditure can be recovered in around 3-5 month. The remaining revenue can be used to improve and expand the city's public transport network and for creating walking- and cycling-friendly streets.

8.3 Indirect economic cost of congestion and benefits of congestion pricing

The congestion caused in different parts of Mumbai has a direct bearing on valuable time lost. In Mumbai, commuters on roads spend an average of 65% more time to complete the trip than is required if roads weren’t congested.75 ITDP estimated that it will lead to productivity loss of ₹36.7 billion (516 million USD) a year.76 Productivity losses are costs incurred due to delays experienced by commuters and businesses. A personal dimension covers losses arising out of personal time forgone while stuck in traffic delays. It includes the time that could be used towards employment, rest, or any personally gainful activity. A commercial dimension—especially in the freight and cargo industry—may stem out of cancelled orders or refused shipments due to late delivery. With higher speeds, the same vehicles can be used more productively, thereby reducing the cost of operations, and hence the cost of services as well. However, the focus has been given to the personal dimension of productivity losses in this study. The total time lost due to congestion has been estimated using the equation: C=q (l/VC -l/VF ) , where

-Time loss due to congestion = C -Traffic amount (flow/volume) at different point of time = q -Length of the journey = l77 -Speed during congestion = VC -Free-flow speed = VF

74 Calculated by excluding weekends and holidays i.e by taking 240 working days a year. 75 https://www.tomtom.com/en_gb/traffic-index/ranking/

76 Estimated by taking 240 working days in a year 77 For WEH- full length of the congestion pricing corridor i.e. 13 km was assumed as trip length. For area-based, since a person travelling into the area would have already faced congestion in the city during his/her journey, therefore full average trip length and half of the average trip length were taken as journey length in the congestion zone.