Preparation of Sustainable Urban Mobility Transition Plans for Odisha

proposed

Odisha is undergoing a steady economic and demographic transformation, driven by industrial growth, service sector expansion, and infrastructure development. As per current estimate, only 16.7% of Odisha's population lives in urban areas, far below the national average of 31.2%. However, recent years have witnessed rapid changes, with urbanization projected to rise to 40% by 2035. Much of this growth is expected to be concentrated in the Greater Bhubaneswar Region (BhubaneswarCuttackPuri-Paradeep cities). The region has emerged as the state's principal urban and economic hub, hosting administrative, commercial, educational, tourism, and industrial functions. Bhubaneswar, the state capital, is also an emerging IT hub; Cuttack serves as a historic commercial center; Puri is a major pilgrimage and tourist destination; and Paradeep is a vital port city, home to one of India's most important commercial seaports. Economic activities in these four cities and their surrounding urban agglomerations continue to attract significant rural migration, driven by employment opportunities and the promise of improved living standards. However, the region is already characterized by low-density urban development, and the rapid population influx is trending toward scattered growth and urban sprawl. This is resulting in considerable strain on urban infrastructure and intensifying demand for housing, transportation, water supply and other essential public services.The expansion of the region's mobility infrastructure has not kept pace with rising travel demand and public expectations for quality services due to a combination of institutional challenges and the absence of a cohesive vision. The urban public transport system in Odisha is predominantly bus-based. In the Greater Bhubaneswar Region, Capital Region Urban Transport (CRUT) serves as the main public transit agency, operating a fleet of about 530 buses, including 150 electric buses. However, service levels have not kept up with this growing demand and remain below national urban benchmarks, limiting the system's ability to attract users away from private modes of transport. Paratransit services, including shared auto-rickshaws, are essential to daily mobility but are largely informal, unregulated, and poorly coordinated. As a result, Bhubaneswar is witnessing a sharp increase in private vehicle ownership, especially two-wheelers, which now account for 55% of all tripscompared to just 8% by public transport and 12% by non-motorized modes like walking or cycling. Between 2016 and 2025, the region recorded an annual growth of 89% in two-wheeler registrations and 92% in car registrations. Overall, the organic urban development process is leading to unplanned urban sprawl in the region, heavy reliance on private vehicles, worsening traffic congestion, and aggravated environmental degradation. If not addressed immediately, the current trends could lead to a reduction of the regions' competitive advantage and declining quality of life. At the regional level, inter-city bus services operated by Odisha State Road Transport Corporation (OSRTC) have expanded in the past 5 years. But the overall service volume, quality, and financial sustainability need significant improvement, considering growing motorization even for rural and intercity travel. These factors are resulting in increasing traffic congestion, road safety concerns, and worsening air pollution, underscoring an urgent need to strengthen multimodal transport systems and implement sustainable mobility solutions in the Greater Bhubaneswar Region and Odisha more broadly.Governance and investment in Odisha's mobility sector, in particular urban areas, remain fragmented, with infrastructure development, service provision, and funding largely driven by isolated projects rather than a coordinated and integrated approach. Multiple agencies with overlapping mandates are responsible for transport, leading to inefficiencies and lack of synergy. Despite the spatial and infrastructural interdependencies in the Greater Bhubaneswar Region, there is no CRMP to integrate land-use and transport planning. Additionally, the absence of a functional Unified Metropolitan Transport Authority hinders coordinated governance. Urban development strategies promoting compact growth, along with land-based financing mechanisms, remain underutilizeddespite their potential to generate capital revenue, meet the long-term investment needs of transport and urban redevelopment projects in the region, and attract private sector investment.The Government of Odisha recognizes the need for a paradigm shift toward integrated, sustainable, and inclusive urban mobility and land use planning. Broader development strategies including the Tri-City Urban Development Plan, the Greater Bhubaneswar Economic Region Plan, and the CMPare currently under consideration. The Bhubaneswar Metro project proposal, approved by the Government of Odisha in 2023, is a major investment for public transport improvement in recent years. However, the long-term economic and financial viability of the investment proposal depends on how well it aligns with the development patterns and existing and other planned transport networks, particularly in providing a public transportbased total mobility solution. This also requires realigning growth and densities along the new mass transit corridors, integrating the bus system with the metro to enhance the ridership, and utilize land values along the corridor to generate capital revenues. In addition to the Bhubaneswar Metro, additional major infrastructure investments are planned, including expanding the CRUT bus network and enhancing regional bus services through the OSRTC. The government has demonstrated commitment to a TOD-based urban growth strategy, as reflected in Bhubaneswar's draft Comprehensive Development Plan 2040. However, key policy, planning, institutional, and regulatory frameworks have yet to be fully developed or operationalized.To systematically and holistically address the above sectoral challenges, the Government of Odisha has requested technical assistance from ADB to develop coordinated mobility and urban development strategies that will (i) foster compact, inclusive, and sustainable growth, and (ii) establish a multimodal public transport system centered on comprehensive mobility solutionsthereby strengthening the region's competitiveness and quality of life.The TA aligns with three of the seven operational priorities of the ADB Strategy 2030 (OP3, OP4, and OP6). In addition to the Strategy 2030, it conforms with Transport Sector Directional Guide, which emphasizes integrated transport system including modernization of urban rail, bus, and non-motorized transport networks. The TA is also aligned with the country partnership strategy for India (20232027), in advancing multimodal urban transport solutions, infrastructure planning, TOD, and finance.