Explained: The New Policy That Paves the Way for Private Bus Depots in Uttar Pradesh
CM Yogi Adityanath has approved the “UP Stage Carriage Bus Terminal, Contract Carriage, and All India Tourist Bus Park Policy, 2025,” signaling a new era for private bus depots in Uttar Pradesh. Here’s what it means for investors and the public.
The Uttar Pradesh government has introduced a major policy shift to encourage private investment in the state’s public transport sector.
The newly approved “UP Stage Carriage Bus Terminal, Contract Carriage and All India Tourist Bus Park Policy, 2025” paves the way for establishing private bus depots in Uttar Pradesh.
The goal is to improve infrastructure, increase efficiency, and offer better services to passengers statewide.
Finance Minister Suresh Kumar Khanna revealed that the decision was taken at a cabinet meeting chaired by Chief Minister Yogi Adityanath.
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What’s the New Policy About?
Under this new framework, individuals, private companies, or consortia can now apply to build and operate bus terminals and tourist bus parks in Uttar Pradesh. These facilities will include:
- Stage carriage bus terminals (for regular intercity buses)
- Contract carriage bus parks (for private hire and school buses)
- All India Tourist Bus Parks (for tourist operators across the country)
A Regulatory Authority, led by the District Magistrate, will be set up in every district to oversee the approval and operation of these private bus depots in Uttar Pradesh.
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Key Highlights for Investors
To set up a private bus depot in Uttar Pradesh, applicants must meet a few conditions:
- Own at least 2 acres of land
- Have a net worth of ₹50 lakh
- Show a turnover of ₹2 crore in the previous financial year
- Be a legal entity, either as an individual business or a consortium
The policy also imposes certain limits:
- Max 10 depots per applicant across UP
- No more than 2 in one district
- Only 1 depot is allowed on the same bus route
Once approved, private operators will be granted operational rights for 10 years, with the option to renew for another 10 based on performance. Transfer of ownership is allowed after one year of operation.
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The Regulatory Authority
Each district will form a Regulatory Authority, including:
- The District Magistrate (Chairperson)
- Senior police and municipal officials
- Transport department representatives
- Public Works Department (PWD) engineers
- A subject expert nominated by the Chairperson
This body will monitor applications, issue authorizations, and ensure the proper functioning of private bus depots in Uttar Pradesh. It can also suspend or cancel licenses if operators violate the rules, after giving them a chance to present their case.
In case of disputes or grievances, operators can appeal to the Divisional Commissioner, who will serve as the appellate authority.
The policy represents a strategic move to modernize transport infrastructure through private participation. By inviting private investment in bus depots in Uttar Pradesh, the state aims to reduce overcrowding, improve passenger experience, and boost regional connectivity.
