The Tamil Nadu government has expanded its ‘Vettri Payanam Thittam’ (VPT), a no-fare bus travel scheme for women. This initiative is expected to cost an additional ₹1,600 crore annually, bringing the total cost to ₹6,000 crore. The scheme is an extension of the existing ‘Vidiyal Payanam’ and aims to provide free travel to an estimated 84 lakh women daily.
While the state’s Gross State Domestic Product (GSDP) is substantial enough to accommodate this expenditure, concerns have been raised regarding the social return on investment (SROI) versus the fiscal cost. Questions remain about whether the government can translate the estimated 84 lakh daily journeys into measurable gains in women’s employment, productivity, household income, and mobility.
The scheme is not targeted, meaning some of the subsidy benefits individuals who may not require financial assistance. For the scheme’s sustainability, experts suggest a clear formula linking reimbursement to actual passenger journeys and route costs is necessary. Without it, there is a risk of increased pressure on transport funding and further weakening the financial health of state transport undertakings, which are already incurring significant daily losses.
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Source: thehindu.com
