Delhi to bid adieu to its much-loved cluster buses

Route planning, scheduling, ticketing and monitoring functions that are presently overseen by DIMTS for cluster buses will be taken over entirely by the DTC

New Delhi: Operations of cluster buses in Delhi will cease from the next financial year as the Delhi Cabinet on Tuesday decided to transfer bus operations currently handled by the Delhi Integrated Multi-Modal Transit System (DIMTS) under the Delhi Transport Corporation (DTC), for smoother operations under a single authority, officials said.

DIMTS was set up in 2006 as a special purpose vehicle (SPV) of the Delhi government, as a professional body to plan and manage multimodal transport systems. (HT Archive)

Under the decision, route planning, scheduling, ticketing and monitoring functions that are presently overseen by DIMTS for cluster buses will be taken over entirely by the DTC. The transition is scheduled to take effect from April 2026, with officials indicating that the shift will be carried out in a phased manner.

“Consolidating operations under DTC would streamline service delivery and address long-standing operational complexities. All drivers and conductors engaged on buses, currently operating under outsourced arrangements, will be brought under the DTC from the start of the next financial year,” transport minister Pankaj Singh said.

At present, the Delhi government has around 4,500 operational buses, of which nearly 2,500 are run as part of the cluster bus service managed by Delhi Integrated Multi-Modal Transit System. Officials said these buses will be gradually integrated into the DTC’s operational framework to ensure continuity of service and minimise disruption for commuters, simultaneously ending the cluster bus service.

Senior government officials also pointed to the potential financial implications of the move.

DIMTS currently charges around 3% of operational costs, which amounts to ₹60-70 crore, to manage ticketing and bus operations. Once operations are fully transferred, the savings will contribute to greater financial stability for DTC, which has faced persistent fiscal pressures over the years, officials said.

“A unified command structure will also strengthen accountability and enable more coherent route rationalisation, particularly as the city expands its bus fleet and prepares for the roll-out of additional electric buses in the coming years,” a senior official, requesting anonymity, said.

DIMTS was set up in 2006 as a special purpose vehicle (SPV) of the Delhi government, as a professional body to plan and manage multimodal transport systems, including the cluster bus service introduced to augment DTC’s capacity and improve service standards. Under the cluster model, private operators ran buses on specified routes, while DIMTS handled planning, monitoring, fare collection and performance oversight.

Over time, DIMTS became a key component of Delhi’s public transport framework, particularly in areas where DTC’s fleet strength was insufficient. The model was projected as a way to bring the private sector into public transport while ensuring regulatory control with the government.

However, the functioning of DIMTS has also come under scrutiny. In its audits up to 2022, the Comptroller and Auditor General (CAG) flagged several issues: weaknesses in oversight mechanisms, gaps in performance monitoring of private operators and deviations from prescribed norms in contract management.

The CAG report tabled in the Delhi Assembly earlier this year also noted instances where route rationalisation objectives were not fully met and highlighted concerns over transparency in certain operational and financial decisions. In some cases, the auditor observed that expected efficiency gains from the cluster bus model were not adequately quantified or realised, raising questions about value for money.

Government officials said the Cabinet’s decision to transfer all operational control to DTC takes into account these audit observations, as well as the need for a more integrated and accountable public transport system. The transition, they added, would be monitored closely to ensure compliance with service standards and continuity for commuters as Delhi restructures its bus operations.