Sunday, July 31, 2011

Much ado about autos !

When was the last time that a University student was able to find an auto conveniently (and I am not even talking about the fare yet)? Every time that I step out of my college to go to some place not easily accessible by metro, I spend double the time it would ordinarily take me to reach my destination - because half the time is spent finding an auto.

What is the issue with autos? In 1997, the Supreme Court fixed the number of autos registered in Delhi at 55,000. The reasoning behind this judgement I have not been able to locate, but what I can definitely say is that no judgement has been more ill-conceived than this one.

Let us make a simple guesstime. Assuming that an average family consists of 5 members, the number of families in NCT Delhi is approximately 3 million. Assuming that every day at least one member of a family, on an average, needs to take an auto ride, we get the number of auto rides required per day in Delhi at 3 million. Given that there are, at a maximum, 55000 autos on Delhi roads at any point of time, that is over 50 rider per auto per day. Ask any auto wallah, this does not happen. Evidently, there is a demand-supply imbalance in Delhi.

There are some inherent problems with any kind of licensing system. For one, how does one decide how the licenses are to be given out? This is junction 1 for corruption. Secondly, how does one ensure that licenses are not hoarded by those who are able to get it? This is junction 2 for corruption. Thirdly, how does one ensure that a black market does not develop? This is junction 3. And lastly, how does one ensure that roughly perfect-competition prices are maintained in the market? This is junction 4.

In Delhi, it is not a secret anymore that an auto mafia does exist - for example, an auto usually costing just over a lakh costs over 6 lakhs by the time it reaches the road. This is because obtaining a license is a difficult process, and the mafia hoards most of the lincenses anyway. If one was to include these costs in the cost of production, the prices that the auto wallah charges for the ride will correspondingly increase.

Will removing licenses totally solve the problem? For one, it will lead to a proliferation of autos, and drive down auto charges to bare minimum levels. However, this is likely to lead to more traffic congestion. This is thus something that I am not very sure which way to call. Either way, a fixed number does not do the job. At worst, the Government should fix the number of auto licenses according to the population of the city. This way, new licenses will be issues every year - and probably some licenses that have exceeded a certain number of challans can be removed too.

If rash driving is considered a problem, then let anybody who passes a driving test take an auto? Presently, auto licenses are more scarce than driving licenses, and hence the thrust is on obtaining an auto license, rather than properly monitoring driving standards.

Let's just hope the Government stops looking at the metro as the ultimate solution to traffic woes.

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