BENGALURU: The Institute for Social and Economic Change (ISEC) proposed a phased congestion pricing system for Bengaluru, beginning with a pilot on the 5-7-km stretch of a key IT corridor such as the Outer Ring Road (ORR) to reduce traffic and encourage commuters to shift to public transport.
A working paper ‘A Framework for Implementing Congestion Pricing in Metropolises in India’ by Krishna Raj, Dhanusha Prabhu and Bondita Saikia, argued that charging vehicles for using congested roads during peak hours could help manage traffic demand, reduce fuel wastage and pollution, and generate revenue for public transport.
However, it warned that the policy would succeed only with better transport alternatives, commuter safeguards and transparent use of funds.
Bengaluru had more than 1.23 crore registered vehicles by April 2025, with two-wheelers accounting for over 70%. The city’s dispersed employment hubs, particularly IT and manufacturing clusters, make congestion pricing more complicated than in cities where traffic is concentrated in a single central business district.
The paper cited the TomTom Traffic Index for 2025, which estimated that a 10-km journey in Bengaluru took an average of 36 minutes. It also noted that commuters lost 117 hours to rush-hour traffic in 2024. They said starting with a dynamically priced premium lane on the 5-7-km stretch of ORR, allowing single occupancy vehicles to pay for a faster journey while buses, shared cabs and carpools use the lane for free.
In the second phase, an area-based charge could be introduced for vehicles entering the central business district around Vidhana Soudha, with daily caps to protect residents and businesses.
Later, the city could consider distance-based charges that vary according to the time and location of travel, initially testing the model on commercial fleets such as taxis and delivery vehicles.
The paper also recommended combining congestion charges with market-based on-street parking fees to discourage vehicles from circling in search of parking. Revenue from both could fund park-and-ride facilities at Metro terminals, electric bus shuttles, last-mile connectivity and safer footpaths.
Stressing on equity, the authors cautioned against imposing a flat charge without considering the impact on low-income commuters, informal workers and two-wheeler users.
The paper recommended legally earmarking all net revenue for public transport and active-mobility infrastructure, along with transparent reporting on expenditure. Drawing lessons from Singapore, London and Stockholm, it advocated a time-bound pilot with public consultation and measurable outcomes before any wider rollout. The authors also highlighted that congestion pricing could work in Bengaluru, but only if commuters have reliable alternatives and can see tangible benefits from the money collected. Public trust, rather than technology alone, will determine its success.
