FY2018 Study on Business Opportunity of High-Quality

FY2018

Study on business opportunity of High-quality Infrastructure to Overseas

Feasibility Study of Common Mobility Card Business in Gujarat, India

February, 2019

Ministry of Economy, Trade and Industry (METI)

Entrustee: NEC Corporation Table of contents

1. Project overview 1-1. Background and objective 1-2. Target area of the study 1-3. Methodology of the study 1-4. Project structure 2. Results of the project 2-1. Local needs and issues towards Common Mobility Card expansion 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state 2-1-2. Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion 2-1-3. Survey for trends of local players which provide transportation IC card payment service 2-1-4. Survey for trends of introduction status for payment service besides transportation use 2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI 2-2. Business feasibility 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues 2-2-2. Examination of issue and solution related to localization of proposed technology for making business model 2-2-3. Examination of strategic issues and countermeasures 2-2-4 Business model development and its elaboration 2-3. Implementation of reporting seminar 2-3-1. Reporting seminar in Gujarat Table of contents

▌ In India, the concept of “National Common Mobility Card” exists as the country promotes cashless, and smart city. However, each city is implementing different technologies due to lack of national standard. ▌ As an ICT solution provider for 2 major cities in Gujarat (Ahmedabad and Surat), NEC conducted this Feasibility Study of Common Mobility Card Business in Gujarat, India.

Background and objective (Excerpted and translated from NEC’s specification sheet)：

In Republic of India, soon after the launch of the present government of Narendra Modi in May, 2014, “Digital India Program” has been formulated as national policy. In this program, the government aim to promote the digitalization of financial deals and cashless system. As a fact, the government has suddenly abolished high-value banknote to eliminate the corruption in November, 2016 for example, to realize the cashless society establishment with diffusion of Fin Tech.

According to the above national policy, Ministry of Housings and Urban Affairs (MoHUA) as main role has formulated “Smart Cities Mission Statement & Guidelines” in June, 2015. This, as one of the most important policy of the government, aims to transform 100 target cities to Smart City by utilizing ICT (Pan City Development). As of now, around 90 cities have been selected and 11 of them listed “Common Card” as the expected smart solution to be introduced (Round1: 7 cities, Fast Track: 1 city, Round2: 3 cities). Among them, Ahmedabad and Surat cities have been selected as smart city which will be the main target site of this feasibility study already implemented the contactless smart card based on RuPay (Rupee Payment) specification formulated by National Payments Corporation of India (NPCI). In Ahmedabad, his RuPay based smart card is already available for transportation use like Bus/BRT, and the integration with Metro Express for Gandhinagar - Ahmedabad (MEGA) is being reviewed.

Despite the situation with such grand idea, NPCI and MoHUA who have been formulating “National Common Mobility Card - Submission of Minimum Standards” (inaugurated in 2009, NCMC) don’t establish the practical and unified technical specification for transportation use in the card data format yet even after 8-9 years passed after the policy issued. As a result, each state, city government and transport operator is implementing smart card system individually, which consumes time and cost than required. Furthermore, by introducing transport smart card with several specifications, it becomes difficult to realize seamless transfer among multiple transportation modes (Interoperability).

On the other hand, Feasibility Study for Infrastructure Provision in Smart City Development in Gujarat state conducted under Ministry of Economics, Technologies and Industries in 2017 implied the possibility to utilize Japanese technology for transport smart card in the final report.

4 1-1. Background and objective National Common Mobility Card (NCMC)

▌ National Common Mobility Card (NCMC) is the concept Government of India is driving forward. ▌ NCMC is a contactless payment card which enables nation-wide interoperability. Major features of NCMC：

 Card-based payment  Applicable both for online payment (contact & contactless), and offline payment (contactless)  Capable to have stored value for offline transaction  Available not only for bus, metro, parking, and toll gates with contactless payment function, but also for ATM, retail stores, and e-commerce.  Issuer of NCMC has to be a member of Reserve Bank of India  NCMC can be issued as debit card, prepaid card, and credit card.  Can host various services such as commuter pass and seasonal ticket

Card Issuing Acquiring Bank Toll gate Metro Bank Retail store Card usage Transaction request

P NCMC Bus・BRT Parking

Transaction data from Acquiring Bank NPCI National Automated Clearing House (NACH) Settlement between Card Issuing Bank & Acquiring Bank

5 1-2. Target area of the study

▌ This study sets Gujarat State (Ahmedabad and Surat) as a major focus, as NEC have implemented NCMC compliant cards for both cities. Discussion among the central government agencies, other states, and related stakeholders will also be the scope of this study.

Major target area of the study：Gujarat State Janmitra

Card *1

Gandhinagar Ahmedabad

Rajkot Vadodara Surat Gujarat State Money Target areas of study

Surat Card outside Gujarat State *2  Discussion among the central government High Speed Railway agencies.  Implementation status Population: 60.38M (9th largest in India, in 2011) of smart cards in other th th • Ahmedabad (5.6M 5 largest), Surat (4.46M 8 largest) state.  In 2028, its population will reach 71.2M according to 2011 Census of India  Major public transportations:  Trend of related • Intercity: Western Railway (Central government operation), stakeholders such as Intercity bus (State operation) banks and IT solution • Ahmedabad: Bus / BRT / Metro (Under Construction) providers. Surat: Bus / BRT / Metro (Planning) / High Mobility Corridor (Planning) •  Cashless trend other • Rajkot: Bus / BRT • Vadodara: Bus / BRT (Planning) than smart cards.  High Speed Railway is planned to start its operation in 2023  Manufacturing industry sector in Gujarat makes up 40.6% of 2019’s national GDP  Current Prime Minister, Narendra Modi served as the state’s Chief Minister from 2001 to 2014

*1 Source: MoHUA SMARTNET「COMMON CARD PAYMENT SYSTEM A step towards green travel」 6 *2 Source: Surat Municipal Corporation Web Page Domestic On-site Outsourcing 1-3. Methodology of the study activities activities activities

▌ Reflecting each layer’s (Central / State / City / Private) opinions and activities, NEC made a proposal to the key stakeholders in Gujarat.

Study local needs and issues towards Business model development Final report Common Mobility Card expansion (Oct - Jan) (Jan - Feb) (Aug - Dec)

9/2~9/15 9/25~10/12 10/28~11/3 12/9~12/22 1/20~2/3 Wrap On / findings up

Considering strategic issues / Biz model elaboration model Biz / issues strategic Considering th

Desk Desk research / On Wrap up findings / findings up Wrap 1st visit 2nd visit 3rd visit Examine proposed 4th visit 5 visit Final Reporting on-site survey on-site survey on-site survey on-site survey Seminar (India) Central Govt. City Govt. GJ State Govt. GJ State Govt. GJ State Govt. Hearing survey on Hearing survey on Collect feedbacks Brief direction of City Govt. NCMC discussion Ahmedabad’s and for the proposed the proposal and Make a proposal at status as well as Surat’s NCMC technology, and officially invite for Examine proposed technology proposed Examine the reporting event

implementation implementation discuss business the Final Reporting -

tech tech & Business model in the presence of site site survey preparation schedule for key - status, and feasibility. Seminar. site site survey preparation key stakeholders stakeholders. adaptation plan. from State govt. , Ahmedabad and Private Academic Central Govt. Surat. GJ State Govt. Stakeholders Institute Brief direction of Hearing survey on Hearing survey on the proposal and Receive Discuss the Report to METI GJ State’s plan for NCMC for possibility of officially invite for Supporting Letter adopting NCMC, and stakeholders such collaborative the Final Reporting from GJ State and (Japan) which department as banks and IT research and proof Seminar. Surat will be in charge. solution providers. of concepts.

Report from the domestic subcontractor Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Examination on potential utilization of big data, accumulated through transportation common card business, with AI Report from the on-site subcontractor Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion Survey for trends of local players which provides transportation IC card payment service Survey for trends of introduction status for payment service besides transportation use

7 1-4. Project structure

▌ This project is led by NEC Corporation, in cooperation with ABeam Consulting Ltd. and NEC Technologies India Pvt. Ltd. as subcontractors.

Entruster Ministry of Economy, Trade and Industry (METI)

Entrustee NEC Corporation  Project Management  Implementation of on-site survey on transportation IC card in Ahmedabad and Surat  Business model development  Reporting of the study result  Proposal to Gujarat State Government at the local reporting seminar

Subcontractor Subcontractor

NEC Technologies India Pvt. Ltd. ABeam Consulting Ltd.  Expansion of the survey to other states and  Study and analysis of policies, laws, and cities challenges etc.  Hosting the local reporting seminar etc.

8 Table of contents

Gujarat State Demographic *1

Population: 60.38 million(2011) Municipal Area: Population Density: *9th largest state in India 196,024km2 310 persons/km2

Profile *1 Prospect *2

 Foundation: May 1st 1960  Population Trends  State Capital: Gandhinagar  According to the national census in 2011, the population is projected to reach 71.2 million by 2028, representing 20.7%  Largent City: Ahmedabad increase from 2011  Governor: Shri O. P. Kohli (from July 2014)  In case of higher projection (2.8% annual increase), the population  Chief Minister: Dr. Vijay Rupani (from August 2016) is expected to reach 73.2 million by 2028, showing 24.1% increase from 2011. In case of lower projection (0.7% annual increase), the  Language: Gujarati, English, Hindi, others population is expected to reach 70.7 million by 2028, showing 19.8% increase from 2011.  literacy rate: 79.31%(Country: 74.04%, National census 2011） Factory Increase Trends  Religion: Hinduism (89.1%), Islam(9.1%), Jainism(1.0%),  Sikhism(0.1%), Christianity(0.5%)  In 2014/15, Gujarat State had 17,884 registered factories, exceeding NCR region (Delhi, Haryana, and Rajasthan) which all  Main Cities：Ahmedabad, Vadodara, Surat, Rajkot, Bhuj, Junagadh, together had 17,594 registered factories. Jamnagar  Comparing 2005/06 to 2014/15, number of factories registered in  Economy and Industry: The state ‘s gross output for 2009 is Rs. Gujarat increased by 27.4%. The projection scenario based on NCR 4,293 billion, accounting for 7% of the total Indian GDP. Its annual past data depicts 37.8% increase in from 2014/15 to 2027/28. growth rate from 2004 to 2009 was 10%, exceeding the domestic  Employment Increase Trends average of 9%. Its annual income per capita in 2009 was Rs. 63,961, compared with the domestic average of Rs. 46,492. In  In 2014/15, number of people engaged in factories in Gujarat State 2009, the state contributes to 15% of the national industrial was approx.1.4 million exceeding NCR region which all together production and 21% of the export, and contribution of the had approx.1.3 million. manufacturing industry to GDP was 40.6%.  Comparing 2005/06 to 2014/15, number of person engaged in factories in Gujarat increased by 64.8%. The projection scenario depicts 48.5% increase in next 13 years.

*1: Source: JETRO (https://www.jetro.go.jp/world/asia/in/regional.html) *2: Source: Mizuho Bank (http://www.meti.go.jp/meti_lib/report/H29FY/000034.pdf)

10 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Gujarat State: Public Transportation

▌ There are intercity transportations as well as intra-city transportations. ▌ Ahmedabad Metro is under construction. Surat Metro and inter-state High Speed Railway are planned to be operated. Overview Daily Ridership

Railway connecting the states of Maharashtra, Madhya Pradesh, Indian Railways  Rajasthan, and mainly in Gujarat. 4.4 million (Western Railways) Inter-  Length: 6,448.64km State National High Speed Rail  High-speed railway connecting 12 major stations of Gujarat and 18,000 Corporation Limited Maharashtra States such as Mumbai, Surat, Vadodara, Ahmedabad. (One Way) (Planned)  Length: 508.17km

Gujarat State Road Transport  Bus service connecting neighboring states, mainly in Gujarat state. State 2.2 million Corporation  7,467 Vehicles

Gujarat Metro Rail  Urban railway service connecting Gandhinagar and Ahmedabad. 660,000 Corporation  Length: 39.259km (Expected)

 Municipal BRTS operated by an entity under Ahmedabad city. Ahmedabad BRTS 350,000  250 vehicles

Municipal city bus operated by an entity under Ahmedabad city. Ahmedabad City Bus  600,000  977 vehicles

 Municipal BRTS operated by a private company under Surat city. City Surat BRTS 40,000~45,000  116 vehicles (planned)

Municipal city bus operated by a private company under Surat city. Surat City Bus  40,000  875 vehicles

 Metro planned to start operation in 2023. Surat Metro (Planned) N/A  Length: 40km, 38 stations

Surat High Mobility Corridor  24 hour bus service by a private company under Surat city. N/A (Planned)  34 vehicles, 22 stations

11 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Ahmedabad City: Overview

Demographic of Ahmedabad

Population: 5.6 million(2011) Municipal Area: Population Density: *5th largest city in India 464km2 12,000 persons/km2 *1st largest city in Gujarat State

Profile Background

 Government: Municipality was founded in 1873, upgraded to  Growth of the City Ahmedabad Municipal Corporation (AMC) in 1950  Even after the state capital was transferred from Ahmedabad  Mayor: Bijalben Patel (Bharatiya Janata Party) to Gandhinagar in 1970, it developed as a center of economic activity. It is the largest city in Gujarat and there  Population Trends: Expected to be 7.74 million in 2025 were 220 Japanese companies (as of January 2015). (according to the report by UN-HABITAT)  In 2010, "Forbes" list of the world's fastest growing cities  Number of registered vehicles: Increased from 1.29 million in included Ahmedabad at number 3 after Chengdu and 2002 to 3.36 million in 2014 *1 Chongqing from China.  Other: It has "Sardar Vallabhbhai Patel International Airport"  Since it is also the terminal station of Indian high-speed which is named after the first Deputy Minister of India, and railway (MEGA) scheduled to open in 2019, further growth is direct flights to various parts of India, the Middle East, expected in the future. Singapore, etc. are operated.  Issues (Unit: million Persons)  With the urbanization by economic growth, the population and the number of automobiles rapidly increase. Traffic jams become more serious, and it causes more economic losses. Additionally, serious air pollution is also problems.  To alleviate traffic congestion and to improve the urban environment through the reduction of traffic pollution, JICA‘s loan assistance ”Ahmedabad Metro Project (1)” (about 82.4 billion Japanese Yen) is now implemented (Loan Agreement Source: UN-HABITAT “State of the World's Cities 2010/2011” was signed in March 2016) .

*1 Source: JICA (https://www2.jica.go.jp/ja/evaluation/pdf/2015_ID-P247_1_s.pdf)

12 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Ahmedabad City: Public Transportation (Metro)

▌ Gujarat Metro Rail Corporation aims to provide safe, inexpensive, environmentally friendly public transportation services to citizens, connecting with other public transportation such as bus, BRTS, railway etc. 11 stations (out of 32 stations in total) may have interconnection.

Metro

 Operator: Gujarat Metro Rail Corporation Ltd.

 Overview: Urban railway service connecting the Gandhinagar capital city and Ahmedabad run by a special purpose vehicle (SPV) jointly owned by the Indian central government and the Gujarat state government. This is a JICA‘s loan assistance project. (about 82.4 billion Japanese Yen)

 Route length: 39.259km(Phase1)  No. of stations: 32 Stations  Ridership per day: 660,000*1 (Expected in 2021)  Operation: scheduled in 2019

 Smart Card: to be implemented.by Nippon Signal Co., Ltd. Details are expected to be decided soon. According to the tender document, It is conditioned that Janmitra Card is available. Source: MEGA ”Route Map” (http://www.gujaratmetrorail.com/route-map-2/)

*1 JICA (https://libportal.jica.go.jp/library/Data/DocforEnvironment/EIA-EPC/EastAsia-SouthwesternAsian/indiaAMRP/EIAReport.pdf) 13 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Ahmedabad City: Public Transportation (BRTS)

▌ BRTS operation began in 2009 and it gained great success as citizen’s daily transportation. Since the success of BRTS in Ahmedabad has been considered as a model case for all India. Many missions have visited Ahmedabad from India as well as overseas *1.

BRTS

 Operator: Ahmedabad Janmarg Limited(AJL)

 Overview: Municipal BRTS operated by an entity under Ahmedabad city (AMC).

 Route length: 97 km  No. of stations: 157 stations  No. of vehicles: 250 vehicles  Ridership per day: 350,000  Operation: from October, 2009

 Smart Card: Janmitra Card has been introduced and AFCS is delivered by NEC (as a part of "Intelligent Transport Operation Management System" awarded by AMC including AFC, Bus position information management system, Passenger information provision system, vehicle operation planning system and sales office management system)

Source：Ahmedabad Janmarg Ltd

*1: Source: JICA (http://open_jicareport.jica.go.jp/pdf/12234266_01.pdf)

14 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Ahmedabad City: Public Transportation (City Bus)

▌ Ahmedabad Municipal Transport Service (AMTS), which began in 1947, is the first public bus service for citizens. It has played an important role in suburban and neighboring village development.

City Bus

 Operator: Ahmedabad Municipal Transport Service(AMTS)

 Overview: Municipal city bus operated by an entity under Ahmedabad city (AMC).

 No. of Routes: 166 routes  No. of vehicles: 977 vehicles  Ridership per day: 600,000  Operation: from April, 1947

 Smart Card： Janmitra Card has been introduced and AFCS is delivered by NEC (as a part of "Intelligent Transport Operation Management System" awarded by AMC including AFC, Bus position information management system, Passenger information provision system, vehicle operation planning system and sales office management system)

Source：CEPT University「Bus Rapid Transit System, Ahmedabad」 (http://www.gidb.org/pdf/bRTSchapter46.pdf)

15 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Surat City: Overview

Demographic of Surat

Population: 4.46 million(2011) Municipal Area: Population Density: *8th largest city in India 326.5km2 14,000 persons/km2 *2st largest city in Gujarat State

Profile Background

 Government: Municipality was founded in 1852, upgraded to  Growth of the City *1 Surat Municipal Corporation (SMC) in 1966  Surat is expected to achieve high economic growth. For  Mayor: Jagdish Patel (Bharatiya Janata Party) example, according to City Mayors Foundation’s research, Surat is ranked 4th among the urban areas in the world  Population Trends: Expected to be 5.70 million in 2025 (according to the report by UN-HABITAT) by the economic growth rate forecast from 2006 to 2020. It is known as the center of diamond business (42% of  Number of registered vehicles: 2.20 million *1  polishing and processing, 40% of export of the world‘s  Other: While SMC has the authority on the budget and natural diamonds being done in Surat). It is also the investment execution related to urban road construction, the center of the textile industry (40% of Indian man-made police authority also takes the initiative to realize investment fabrics and 28% of fibers in India are produced in Surat). in the traffic management system by inviting donations from the private sector *1.  In the suburb, “Hazira” industrial area is developed as SEZ (Special Economic Zone) and the port is also upgraded in order to invite foreign investment. Japanese (Unit: million Persons) companies enter there, for example, Mitsubishi Heavy Industries, Ltd. Established its boiler and turbine generator factories (joint ventures with L&T).  Issues  In response to the rapid economic development and the increase in traffic volume, the traffic congestion becomes serious issues though Surat has been actively investing in road infrastructure to accommodate rapidly increasing Source: UN-HABITAT “State of the World's Cities 2010/2011” traffic.

*1: Source: JICA (http://open_jicareport.jica.go.jp/pdf/12234266_02.pdf)

16 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Surat City: Public Transportation (BRTS)

▌ Surat is the third city to introduce BRTS (the second is Indore city) following the BRTS success model of Ahmedabad. Surat is the first city to run AC-Midi bus instead of the standard bus *1.

BRTS

 Operator: Sitilink

 Overview: Municipal BRTS operated by a private company under Surat city.

 No. of route: 6 routes

 Route length: 102 km (Planned)

 No. of stations: 184 stations (Planned)

 No. of vehicles: 116 vehicles (Planned)

 Ridership per day: 40,000-45,000

 Operation: from January, 2014

 Smart Card: Surat Money Card has been introduced and AFCS is delivered by NEC.

Source: JICA (http://open_jicareport.jica.go.jp/pdf/12234266_02.pdf)

*1 Traffic Infra Tech Magazine 「Surat: Smart City in the making」(https://www.trafficinfratech.com/surat-smart-city-in-the-making/)

17 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Surat City: Public Transportation (City Bus)

▌ As of November 2016, the number of users was limited up to 3,000 people/day, but as a result of improving services by introducing the latest ICT system and strengthening competitiveness at low price, the number of users reached 65,000/Day as of August 2017 *1

City Bus

 Operator: Sitilink

 Overview: Municipal City bus serivce by a private company under SMC. It promotes modal shift from auto- Rickshaw to city bus *1

 No. of routes: 44 routes (Planned)

 Route length: 515km (Planned)

 No. of stations: 690 stations (Planned)

 No. of vehicles: 875 vehicles (Planned)

 Ridership per day: 40,000

 Operation: from January, 2014

 Smart Card: Surat Money Card has been introduced and AFCS is delivered by NEC Source: Integrated Mass Transit System An Initiative of Surat Municipal Corporation *1: Source: The Times of India ”How Surat got people to ditch autorickshaw rides, opt for buses” (https://timesofindia.indiatimes.com/city/delhi/how-surat-got-people-to-ditch-autorickshaw-rides-opt-for-buses/articleshow/61611309.cms)

18 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Surat City: Public Transportation (Metro)

▌ The construction plan of Metro in Surat City is expected to be started in the first quarter of 2019 after approval by the central government. Donors such as the Asian Infrastructure Investment Bank (AIIB), World Bank and JICA, may have interest to support it *1.

Metro

 Operator: To be decided, but there is a possibility GMRCL (Operator for Ahmedabad Metro) may become the operator *1, while four elevated stations will be built by SMC with private partners *2)

 Overview: In January 2017, Gujarat State Government approved the construction of the two corridors, waiting for approval by the Central Government of India (assumed to start the project in early 2019)

 Route length: 40km (Planned)

 No. of stations: 38 stations (Planned)

 Operation: scheduled in 2023

 Smart Card: To be decided Possible alignment of Surat Metro’s Line-1 & Line-2 Source: The Metro Rail Guy ”Gujarat Government Finalizes Surat Metro’s Routes” (https://themetrorailguy.com/2017/01/14/gujarat-government-finalizes-surat-metros-routes/)

*1: Source: Metro Rail News (https://www.metrorailnews.in/surat-metro-metro-rail-work-diamond-city-launched-2019/) *2: Source: The Times of India (https://timesofindia.indiatimes.com/city/surat/revised-dpr-for-surat-metro-rail-project-to-be-approved-this-month-endsoon/articleshow/64101245.cms)

19 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Surat City: Public Transportation (High Mobility Corridor)

▌ Construction of HMC (High Mobility Corridor) is planned with Surat City's own fund for the purpose of streamlining the economic activities concentrated in the center of Surat *1

HMC

 Operator: To be decided. (Expected to be constructed with Surat City's own fund)

 Overview: 24 hours Urban bus service. The fare will be from Rs.2 to Rs.5. It is said that 15% to 20% of the city population, 26 to 30% of the city's employment, and 8 to 10% of city GDP are concentrated in the center of Surat city, which is equal to 5% of the city area.

 Route Length: 40Km

 No. of stations: 22 stations

 No. of vehicles: 34 vehicles

 Operation: scheduled in 2018

 Smart Card: TBD

Source: Integrated Mass Transit System An Initiative of Surat Municipal Corporation

*1 Integrated Mass Transit System An Initiative of Surat Municipal Corporation (http://urbanmobilityindia.in/Upload/Conference/d4b4e263-2e5f-4cc3-94eb-cf88d145808a.pdf)

20 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Gujarat State: Smart card implementation status

▌ NCMC compliant cards implemented in Ahmedabad/Surat for City Bus/BRTs. However, both cities are struggling to grow the number of smart card users. ▌ Metro in Ahmedabad was originally planning to introduce their own card as well as accepting Janmitra card. However, now reconsidering their action in order to be in line with central government’s NCMC plan.

Janmitra Surat Money Card Card Yet, still have many passenger buying paper tickets

220,000 1,100 Ahmedabad Surat Vadodara Rajkot

Bus/BRT Bus/BRT Bus (BRT planning) Bus/BRT

Metro Metro(Planning)

Parking Parking Parking Parking

Inter-city Bus

Indian Railways (Western Railways)

High Speed Railway(Planning)

Auto rickshaw Auto rickshaw Auto rickshaw Auto rickshaw

NCMC compliant card PTO specific card which can be used only within the issuing transportation authority

21 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Ahmedabad City: Smart Card (Janmitra Card)

▌ Janmitra card is a transportation IC card in Ahmedabad, which is NCMC compliant. It is issued by ICICI Bank, a contract winner of Ahmedabad Municipal Corporation. ▌ As of January 2019, approximately 220,000 cards were issued*1.

Janmitra Card corresponding to the open loop (which is NCMC standard) started to be issued on October 16, 2017 as a co-brand of Ahmedabad Municipal Corporation (AMC) and ICICI Bank.

Janmitra Card materialises Cashless, Touch & Go in the city transportation of BRTS and City Bus.

BRTS boarding fare discount is offered; Cardholders get 10% discount, Student/Disabled person get 40% discount, Janmitra user has free 2 Mbps Wi-Fi service at BRTS stations. Janmitra Card *2

Card Types Services provided by Janmitra Cards Card Fees 【Non-personalised card】  Cashless bus travel in Ahmedabad  Issuance fees for non-  On-Spot cards  Buying tickets and store passes for BRTS and AMTS personalised card: Rs.50  Tourist Cards  Payment of AMC Professional Tax and AMC Property  Issuance fees for personalised Tax card: Rs.75 【 Personalised card 】  Payment of Kankaria Lake entry and Sabarmati  Replacement fees: Rs.50 (for  Standard cards Riverfront entry non-personalised card), Rs.75  Child/Youth Cards  Shopping mall payments, at restaurants, other (for personalised card)  Senior Cards digital payments  Maximum stored balance：  Concession Cards  Payments for AMC run parking Rs.10,000

*1 Information from hearing with stakeholders *2 Source: MoHUA SMARTNET「COMMON CARD PAYMENT SYSTEM A step towards green travel」

22 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Surat City: Smart Card (Surat Money Card)

▌ Surat Money Card is a transportation IC card in Surat, which is NCMC compliant. It is issued by ICICI Bank, a contract winner of Surat Municipal Corporation. ▌ As of January 2019, approximately 1,100 cards were issued in advance of the full scale operation and more 10,000~20,000 cards are expected to be issued soon for public civil-service workers *1.

Surat Money Card corresponding to the open loop (which is NCMC standard) started to be issued in May 2018 as a co-brand of Surat Municipal Corporation (SMC) and ICICI Bank.

Surat Money Card materialises Cashless, Touch & Go in the city transportation of BRTS and City Bus. (Usage for City Bus is under testing as of February 2019)

Personalised card holders can benefit from various discounts such as discount for property tax.

Surat Money Card *2

Card Types Services provided by Surat Money Card Card Fees 【Non-personalised card】  Cashless bus travel in Surat  Issuance fees: free for  On-Spot cards  Buying tickets and store passes for BRTS and City issuance (But, at least Rs.  Tourist Cards Bus 100 is required for the first  Payment of SMC Professional Tax, Property Tax, Top-up) 【Personalised card】 Water bill, ect.  Replacement fees: Rs.50  Standard cards  Payment in retail environment (for non-personalised card),  Child/Youth Cards  Expected to be used for library, swimming pool, park, Rs.75 (for personalised card)  Senior Cards parking, etc. in near future  Maximum stored balance：  Concession Cards Rs.10,000

*1 Information from hearing with stakeholders *2 Source: from SMC website

23 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Challenges to achieve interoperability (1/3)

▌ Commercially, cities in Gujarat have exclusive contracts with their partnering banks for smart card issuance. This prevents other smart cards to be used in the city. ▌ Technically, common data format has to be formed to achieve interoperability among different cities. (Gujarat is a special case for having a common data format among cities since both Ahmedabad and Surat cards are implemented by ICICI Bank and NEC)

Gujarat State Other Cities / States Janmitra Card Surat Money Card Bangalore, Kochi, etc.

Common Area Common Area Common Area (ex. Balance Information) (ex. Balance Information) (ex. Balance Information)

… … …

 An exclusive contract exists between each city and its partnering bank for card issuance, and it prevents Commercial other smart cards to be used in the city. (Common data format exists in Gujarat since both cards are implemented by ICICI Bank and NEC)

 Data required for fare calculation are stored in each Public Transportation Operator (PTO) specific area, and it prevents interoperability among different PTOs. Technical MoHUA, C-DAC(Centre for Development of Advanced Computing) and NPCI(National Payments Corporation of India) are discussing to introduce improved common format for transportation sector.

24 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Challenges to achieve interoperability (2/3)

▌ In Ahmedabad, although Janmitra Card will be available for Metro, there is a high possibility the card newly introduced by Metro cannot be used in BRT nor City Bus. ▌ Joint discussion between State and City governments is required since Metro is ran under the State where Bus/BRT are ran by the City.

JICA Ahmedabad

ODA Loan

Ahmedabad Issuing Bank Govt of India Govt of GJ Appointing Municipal commissioner of AMC (AMC) Co-brand (ICICI Bank)

Incorporating SPV Funding Funding Funding NCMC

Metro Operator BRTS Operator Bus Operator Project Implementer (GMRCL) (AJL) (AMTS) (SCADL*1)

PTO Specific Card

AFC Vendor AFC Vendor (Nippon Signal) (NEC) Interoperability arrangement for Janmitra card in Metro Interoperability with BRTS is specified in the project specification sheet.

Metro(State led) Bus・BRT(City led)

*1 SCADL: Smart City Ahmedabad Development Ltd

25 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Challenges to achieve interoperability (3/3)

▌ In Surat, a new Metro operator will be decided in 2019 and will start operation in 2023. Without coordination between the State and the City, interoperability within Surat cannot be achieved. (There is a possibility GMRCL will become the operator*1)

(International Financial Institution) Surat

Funding

Surat Issuing Bank Govt of India Govt of GJ Appointing Municipal commissioner of SMC (SMC) Co-Brand (ICICI Bank)

Incorporating SPV Funding Funding Funding NCMC

Metro Operator BRTS Operator Bus Operator Project Implementer (GMRCL or other) (Sitilink) (Sitilink) (SSCDL*2)

AFC Vendor AFC Vendor (To be decided) (NEC)

Metro(State led) Bus・BRT(City led)

*1 Metro Rail News「Surat Metro/ Metro rail work in Diamond city to be launched in 2019」(2018/8/25) *2SCADL:SSCDL:Smart Surat CitySmart Ahmedabad City Development Development Ltd Ltd

26 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Necessity to promote Smart Card

▌ According to the bidding specification documents, it is assumed that the number of card users will increase significantly in 7 years. ▌ Also, the card issuing banks are expected to promote the usability of cards. However, currently the actual card penetration rates seem to be insufficient.

Ahmedabad Surat

Surat Money Card (only personarised cards) was expected that there would be about 2.65 million users in 7 years

Source: “RFP for Open Loop Smart Card Common City Payments System, AMC” In BOQ of the bidding specification document of Ahmedabad, there was a column for inputting the 1 million cards expenses.

Source: “RFP for Selection of Financial Institution for Open Loop Smart Card Common City Payments System, SMC”

27 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Result of the Passenger Survey conducted in Ahmedabad

▌ We have conducted a hearing survey for 540 citizens. ▌ Interviewees have listed such as, “Complicated Card Validation Procedure”, “Security concerns”, and “Limited number of card accepted places” as challenges for Janmitra card.

77%

23%

28 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state Gujarat state’s vision for its urban development

▌ Gujarat State government announced the vision ”Mobility Led Urban Development”. ▌ With the vision, state government is trying to implement facilities such as Integrated Multi Modal Transit Hub, and multi level parking to realise seamless use of public transportation, and reduce traffic congestion.

“Mobility Led Urban Development is important as it affects urban city planning, development, policy and fund use, which should be focused on.”

“50% of revenue loss in public transport in Gujarat will be born by State Government for 7 years to promote it as mainstream of people movement.”

“Parking in city centre is problem. Multi Level On Street Parking is already constructed in Ahmedabad, Surat City, and planned in other major cities Gandhinagar, Rajkot and Vadodara, where the released parking policy in Surat will be followed .”

“Integrated Multi Modal Transit Hub will connect all the public transport – Metro, HSR, Railways, BRTS, Bus and GSRTC.”

Shri Mukesh Puri - IAS, Principal Secretary, Urban Development and Urban Housing Department, Government of Gujarat at Vibrant Gujarat Global Summit 2019

29 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion History of NCMC

▌ The National Common Mobility Card (NCMC) is an initiative by the Ministry of Housing and Urban Affairs (MoHUA) to develop common cards that can be used for any transportation systems ▌ In September 2018, "One Nation One Card" policy was announced aiming nation wide interoperability as well as cost reduction of the entire ecosystem.

History of NCMC

2006 ~2012 ~2014 2015~ 2018~ Cashless fare UTIITSL(Government Though MORE’s MoHUA has established the MoHUA has been working payment system enterprise) began technical standard technical standard of closely with NITI Aayog, C- development preparation for was published as a NCMC. In addition, NPCI DAC, and NPCI to further concept was introducing NCMC traffic common card, formulated RuPay adopted standardize the entire mentioned on the from 2010. In 2012, it was withdrawn NCMC specification ecosystem including National Urban MoUD released because of issues (qSPARC) . financial institutions, AFC Transport Policy technical standard of related to security vendors, hardware 2006. “MORE” as traffic and mutual use. makers to popularise common card. NCMC.

NITI: National Institution for Transforming India (see the next “India will shortly unveil a one-nation-one-card policy for slide) public transport that will bring seamless connectivity C-DAC: Centre for Development of Advanced Computing (see the next slide) between various modes of transport” NPCI: National Payments Corporation of India (see the next slide) -NITI Aayog CEO Amitabh Kant said on September 2018

Government Policies to Promote Cashless Society

August 2014 June 2015 November 2016 Digital India Smart City Mission Abolition of High Bills Soon after the inauguration of the Modi In June 2015, “Smart Cities Mission The government suddenly government, the “Digital India Program” was Statement & Guidelines” was announced as abolished high-value banknotes (Rs 500, Rs 1,000) formulated as a national policy. One of the one of the important policies of the to promote realisation of goals of it is to promote cashless government. MoHUA takes the initiative to cashless society as well as electronification of financial transactions. implement 100 smart cities by utilizing ICT. FinTech business.

30 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Key Stakeholders for NCMC discussion

▌ The Committee for Recommendation on Standards & Specifications for NCMC was established in 2014, and the current NCMC specification was formulated. Currently, NCMC is handled as part of the National Intelligent Transportation Systems (ITS) Committee established by NITI Aayog. ▌ The key stakeholders of NCMC are MoHUA (responsible ministry), NITI Aayog (advice for the entire introduction policy), NPCI (specification formulation), and MeitY (technical advice on specification formulation). NCMC Key Stakeholders in Indian Central Government C-DAC NCMC Committee (2014) members NITI Aayog (policy think tank of Government) “Standard technical spec for AFC*6 system, MoRTH*1 MoHUA MeitY*2 financial institution system, hardware, etc. were submitted to MoHUA. Responsible Responsible PoC is planned with Delhi C-DAC for Intercity for Urban Metro.” transportation transportation NIC*3 MoF*4  Highway  Urban Mobility MoR*5  Smart City Technical Advice

Indian NPCI Technical specification and promotion of NCMC Railways

“C-DAC is working to decide Clearance（RuPay） technical spec for AFC and data Standard Spec NPCI format by March 2019.”

*1 MoRTH: Ministry of Road Transport and Highways *2 MeitY: Ministry of Electronics and Information Technology *3 NIC: National Informatics Centre *4 MoF: Ministry of Finance *5 MoR: Ministry of Railways *6 AFC: Automated Fare Collection 31 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Categories of the Smart Card

▌ Regarding Prepaid Payment Instruments (PPIs), the Reserve Bank of India (RBI) published “Master Direction on Issuance and Operation of Prepaid Payment Instruments” on October 11, 2017(Updated as on December 29, 2017), in which PPIs are defined into three categories.

Definition of PPIs by RBI

Payment instruments that facilitate purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments.

Three Categories of PPIs by RBI

Closed System PPIs Semi-closed System PPIs Open System PPIs

An entity for facilitating the purchase An entity for facilitating the Card Issuer of goods and services from that purchase of goods and services Banks only entity only (banks and non-banks) (banks and non-banks) Used for purchase of goods and services, including financial Used at any merchant for services, remittance facilities, etc., cannot be used for payments or purchase of goods and services, Use at a group of clearly identified settlement for third party services including financial services, merchant locations / remittance facilities, etc. establishments which have a specific contract with the issuer Not permit cash withdrawal, Permit cash withdrawal at ATMs / Cash Not permit cash withdrawal irrespective of whether they are Point of Sale / Business withdrawal issued by banks or non-banks Correspondents Not necessary (Not classified as Approval by payment systems requiring Necessary Necessary RBI approval / authorisation by the RBI)

Source: Reserve Bank of India (https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=11142) 32 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion NCMC related technical standard: EMV Open Loop Card with stored value

▌ In 2015, the Committee for Recommendations on Standards & Specifications for National Common Mobility Card (NCMC Committee) decided EMV *1Open Loop Card with stored value as NCMC standard in consideration of interoperability, ease of implementation, actual implementation cases, implementation cost, related regulation, etc. EMV Open Loop EMV Open Loop Closed Loop Model Card based (Stored Value) Account based Model Model

 Easy implementation as this  EMV based standard and spec  EMV based standard and spec are model is already implemented are open and technically open and technically Established Merit by AFC venders Established  RuPay has further built stored  No constraint for use in transit  Supported by all the established value functionality on EMV  Fast transaction time payment schemes like VISA, platform Master, RuPay, etc.  Relatively easy implementation because it uses the features of  Standard and spec are not  Technically supported by many necessarily open software venders present closed loop model  No constraint for use in transit  No standard exists in India  Possibility of proliferation in  Possibility of proliferation in other  Standard and spec are not other domains domains supported by independent  Cost covered by PTO is medium bodies representing the industry  Cost for PTO is the lowest due to since part of the activity is taken the possibility of wider adoption or government by the banks and indigenous open standard Demerit  Limited possibility of  Interoperability is easily  Benefit in India is high as it is proliferation in other domains achievable relevant to Make in India and  Cost is high because it is Design in India policies  It may be difficult for online proprietary and captive  Interoperability and potential for infrastructure needs to be built validation of commuters during rush hour use in other domain are high and by PTO  Business requirement of checking the it has advantage of stored value  Benefit in India is low as all presence of ticket or pass on card is solutions are controlled by not available international players  Benefit in India is low as all solutions  No serious demerit  Interoperability is limited are controlled by international players Source：MoUD Report of the committee for Standards & Specifications of NCMC

*1: EMV is the international de facto standard which is agreed among EuroPay, Master and VISA, compliant with ISO/IEC7816 while defining the specifications of IC cards and terminals necessary for the financial field. 33 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion NCMC related technical standard: RuPay (1/2)

▌ In order to promote cashless, in 2012 NPCI (Indian Settlement Corporation) introduced the Indian domestic non-cash settlement means "RuPay“. RuPay has been adopted to Janmitra Card in Ahmedabad and Surat Money Card in Surat.

Organisation RuPay Overview Advantages of RuPay

 Headquarter: Mumbai  RuPay is an Indian domestic card  Lower cost and affordability: scheme conceived and launched by Since the transaction processing will  Founded: 26 March 2012 the NPCI happen domestically, it would lead to lower cost of clearing and  Area Served: India, Singapore settlement for each transaction. This  It was created to fulfil the Reserve will drive usage of cards in the  Products: Bank of India’s (RBI) desire to have a industry.  Debit cards, domestic, open loop, and multilateral  Customized product offering:  Credit Cards system of payments and RuPay Domestic scheme is committed  Prepaid cards facilitates electronic payment at all towards development of customized  Virtual Cards Indian banks and financial institutions. product and service offerings for The E-commerce Draft Policy (July Indian consumers.  Parent Company: NPCI 2018) mandates the inclusion of  Protection of information: RuPay as a payment option in online Transaction and customer data  Key persons: transactions) related to RuPay card transactions  Dilip Asbe (CEO) will reside in India.  Dr. N. Rajendran (CTO)  Provide electronic product It is an initiative to build the  Nalin Bansal (VP, Contactless)  options to untapped/unexplored necessary banking infrastructure consumer: Right pricing of RuPay required to propel India towards a products would ensure that banks  Website: https://www.rupay.co.in/ ‘less cash’ economy can target the untapped consumer in rural areas  Inter-operability between payment channels and products: RuPay cards provide interoperability across platforms including ATMs, mobile technology, cheques, etc.

34 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion NCMC related technical standard: RuPay (2/2)

▌ RuPay has been strengthening collaboration with Indian financial institutions and became the largest card network in India (domestic card market share is 65%) depriving domestic VISA and Master's share *1. In addition, RuPay expanded its use in Singapore from May 2018. RuPay Contactless Overview Objectives Global Alliance  RuPay Contactless is an open loop EMV  Provide mechanism for electronic payments  Promote the use of RuPay with based payment product including Low Value Payments (LVP) expanding the global alliance with  This secure card can be used for payment  Deliver a product to address concerns of applications like transport (Metro, Bus, customers considering Indian Banks and many credit card companies etc.), toll, parking, shopping, etc. Merchants including JCB Card in Japan.  It offers the unique proposition of One  Motivate customers to switch from cash to Card for all Payments electronic payments • Discover Card (America) • Diners Club Card (America) • JCB Card (Japan) Contactless Payment Collaboration with Banks • Union Pay (China) • NETS (Singapore) Application of contactless smart chip RuPay has collaborated with almost 600   • BC Card (Korea) technology realises contactless payments international, regional and local banks ELO (Brazil) with no physical connection between the across the country • consumer payment device and the  Promote the use of RuPay with ten core • Dina Card (Serbia) physical POS terminal promoter banks:  Contactless device contains an antenna • State Bank of India that securely transmits transaction • Punjab National Bank information, when touched against • Canara Bank terminal • Bank of Baroda • Union Bank of India Advantages of RuPay Contactless • Bank of India  Speed and Convenience: Average • ICICI Bank transaction time in POS is reduced by 30% • HDFC Bank to 40% • Citibank N. A.  Faster: 63% faster than normal cash • HSBC transactions and 53% faster than normal card transactions  Safe and Secure: Sophisticated chip technology and multi levels of encryptions is used to guarantee secure transactions

*1: ENTRACKR ”With 65% market share, UPI and RuPay ruling domestic payments market, says Arun Jaitley” (https://entrackr.com/2018/11/upi-rupay-india-payments-market/ )

35 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion NCMC related technical standard: qSPARC

▌ “qSPARC” is the NPCI-defined technical standard adopted to RuPay. It has already been introduced to cities such as Kochi, Bangalore, Ahmedabad, and Surat. More than 1.5 million qSPARC (version1) specifications are issued as of August 2018. ▌ Interoperability cannot be achieved due to insufficient transportation specific common data format. MoHUA, C-DAC, and NPCI are discussing to introduce improved common format.

Clearance Standard Service Area

 Define EMV standard in Contact mode and RuPay  There is a service area where merchants and PTOs can proprietary specifications in contactless mode. freely use in one card, and various services such as transit points can be provided based on agreement with the card issuer Transportation Use  The maximum capacity used for one service is 128 byte  Payment in transportation via both contact and  It is recommended to implement the maximum of 20 contactless interfaces are available. applications on one card though up to 255 services can be accepted as logical value on the same card Dual Accounts  Interoperability cannot be achieved due to insufficient common data format.  Define both Global Balance and Local Balance Possible to have two accounts on one card, an account for  Global which the card issuer controls the balance (Global Balance account) and an account for which Merchants and the Service Service Service 1 2 … 20 transport operator manage the balance (Local account). Local Balance

qSPARC v2 Card Manufacturer

 IDEMIA, a French security company, is an only one company certified by NPCI to manufacture and personalise RuPay chip contact and contactless cards, on the qSPARC v2 platform.

Source: from NPCI “RuPay Contactless Ideathon”

36 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Comparison between Japanese and Indian payment related law

▌ The comparison between India’s Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPIs-MTS part) and Japan’s Payment Services Act. ▌ PTOs are card issuers in Japan, while banks are issuers of NCMC in India.

Japan India The Reserve Bank of India(Issuance and Point Payment Service Act (Act No. 59 of June 24, Operation of Prepaid Payment Instruments) 2009, Updated Act No. 49 of June 2, 2017) Directions, 2017(Master Direction)

Supervisory Authority Financial Services Agency Reserve Bank of India Applicability Prepaid Payment Instruments Prepaid Payment Instruments

Own Business All types are subject to law All types are subject to law (Depending on the Applicability for Closed Loop(for own business), Semi-Closed Loop and Third-party amount of stored value) Business Open Loop(for third party business) Open Loop (Only banks), Closed Loop and Semi- Issuer Banks and Non-banks Closed Loop (Banks, and non banks = The Companies Act 1956/Companies Act 2013 registered companies) for Own Business: Notification is required Closed System: RBI approval not required. Approval by Supervisory Authority For Third-party Business: Registration is required Open Loop, Semi-Closed Loop: RBI approval required. Applicability for Transportation IC Not applicable. *Applicable, if IC card can be used for Applicable as PPI for mass transit system, with the card electronic money maximum stored value of Rs. 3,000. Required for non banks to maintain their outstanding In case of non-banks: Half of their unused balance balance in the escrow account, which have to hold Security Deposits for Issuance Incase of banks: not required higher balance than the value of outstanding PPIs and payments due to merchants.

Refund of Value Not permitted in principle Permitted only for Open System PPIs On-site and off-site inspection Document submission (Financial audit report, system Supervisory Method Point of inspection is dearly stated and published as audit report, etc.) an administrative guideline

37 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Regulations for Closed System PPIs and Semi-closed System PPIs

▌ As per RBI’s direction, ten rules are stipulated for Closed system PPIs and Semi-closed System PPIs issued by Public Transport Operators.

The semi-closed Prepaid Payment Instruments (PPI) shall be issued by mass transit system (MTS) operators after 1 authorization to issue and operate such PPIs under the 5th Payment & Settlements act 2007.

The PPI-MTS shall necessarily contain the Automated Fare Collection application related to the transit service to qualify as 2 PPI-MTS.

The card shall be used only at other merchants whose activities are allied / related to or are carried on within the premises 3 of the transit system

4 The issuer may decide about the customer details, if any, required to be obtained for issuance of such PPIs.

The PPI-MTS issued shall be reloadable in nature and the maximum value outstanding in PPI cannot exceed the limit of Rs. 5 3,000/- at any point of time.

6 Cash-out or refund or funds transfer shall not be permitted from these PPIs.

Other requirements such as escrow arrangement, customer grievance redressal mechanism, agent due diligence, reporting 7 and MIS requirements, etc. applicable to issuance of PPIs (as described in the attachment) shall also be applicable in respect of PPI-MTS. These PPIs may be revalidated (including through issuance of new instrument) as per the Board approved policy of the 8 issuer. Non-bank PPI issuers cannot transfer the outstanding balance to their Profit & Loss account for at least three years from the expiry date of PPI. In case the PPI holder approaches the PPI issuer for refund of such amount, at any time after the 9 expiry date of PPI, then the same shall be paid to the PPI holder in a bank account (For Bank users please refer the attachment)

The features of such PPIs shall be clearly communicated to the PPI holder by SMS / e-mail / post or by any other means at 10 the time of issuance of the PPI / before the first loading of funds.

38 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Status of Smart Card implementation for major cities

▌ Implementation of smart cards for public transportation is a growing trend. ▌ Like Gujarat, some states and cities hold several smart cards within their jurisdictions.

Smart Card status outside Gujarat City Format Status Delhi PTO Specific Announced “ONE Card”, available for Bus/Metro (3rd Dec 2018)

Mumbai NCMC(Planning) Announced to issue common card for Mumbai by Dec 2018 Kolkata PTO Specific Announced to commonise cards for 2 Metro lines ( 30th Dec 2018) Chennai PTO Specific Metro card will be available for bus by Dec 2018 Bangalore NCMC Announced BMTC card under Smart City Scheme (17th June 2017)

Hyderabad NCMC(Planning) SBI is planning to do pilot for common card by the end of Jan 2019 Implemented pilot for interoperability among Metro and 7 buses. Noida Kochi NCMC Delhi Announced Kochi 1 Card ( 6th June 2017) UP State Jaipur Nagpur NCMC(Planning) Announced to issue Maha card by Dec 2019, collaborating with SBI Lucknow Pune PTO Specific Planning to issue smart card Nagpur(Planning) Announced the issuance of Odyssey Card in collaboration with Kolkata Bhubaneswar NCMC Navi Mumbai Raipur ICICI bank (18th Oct 2018) (Planning) Bhubaneswar Announced to issue One Raipur card in collaboration with Axis Raipur NCMC Mumbai Bank Hyderabad(Planning) (Planning) Announced to issue City One card in collaboration with SBI (30th Pune(Planning) Noida NCMC Aug 2018) Bangalore Issue prepaid card available both for bus and shopping, in UP State PTO Specific NCMC collaboration with ICICI bank (5th Mar 2014) Issue debit card available both for metro and shopping, in Chennai Jaipur PTO Specific Kochi PTO Specific collaboration with HDFC Lucknow PTO Specific Announced a common card for bus and metro (24th Dec 2016) NMMC*1 is planning to issue common card in collaboration Navi Mumbai NCMC(Planning) with HDFC Bank*2

*1 Navi Mumbai Municipal Corporation *2 Source: Information from hearing with stakeholders

39 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Smart Cards in major cities (1/3)

▌ There exists various smart cards in major cities, since they introduced their own specific smart cards before the launch of NCMC.

Daily Daily # City Card Issuer Format Available Services # of cards Type Transaction Ridership 2M PTO Rs.129M 1 Delhi Delhi Metro Smart Card DMRC Closed Metro 2.76M Specific (As of Dec (\200M) 2017) N/A DMRC/ PTO Semi- Metro 2.76M 2 Delhi ONE Card Metro, Bus (Issue started N/A DTC Specific Closed Bus 3.2M from Dec 2018) DMRC Coral/Platinum Debit Card ICICI PTO Metro, Bus, Retail, Ecommerce Metro 2.76M 3 Delhi Open N/A N/A ICICI Bank Unifare Delhi Bank Specific (Auto Rickshaw, Taxi in the future) Bus 3.2M Metro Credit Card Mumbai Mumbai Metro Smart PTO 4 Mumbai Metro Closed Metro N/A N/A 0.4M Card Specific One Mumbai Metro Coral/Platinum Debit Metro, Retail, Ecommerce Card ICICI PTO 5 Mumbai Open (Railways, Bus, Auto Rickshaw, Monorail, N/A N/A 0.4M ICICI Bank Unifare Bank Specific Parking in the future) Mumbai Metro Credit Card Metro, Retail, Ecommerce PTO 6 Mumbai Mumbai Metro SBI Card SBI Bank Open (Railways, Bus, Monorail, Parking in the N/A N/A 0.4M Specific future) Mumbai Monorail Smart PTO 7 Mumbai MMRDA Closed Monorail N/A N/A 1.9k Card Specific Central & INDIAN RAILWAYS PTO 8 Mumbai Western Closed Railways N/A N/A 7.56M Smart Card Specific Railway

Bus PTO 9 Kolkata Smart Card KMRCL Closed (Metro, Tram, Ferry, Auto Rickshaw, Taxi, N/A N/A 0.7M Specific Railways, Retail, Parking in the future)

40 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Smart Cards in major cities(2/3)

▌ As part of the Smart City Mission, Bangalore has introduced NCMC compliant common card

Daily Daily # City Card Issuer Format Type Available Services # of cards Transaction Ridership

PTO 1.07M Rs.1.05M 10 Chennai Smart Card CMRL Closed Metro 0.09M Specific (As of Fb 2018) (\1.64M)

PTO Metro, Parking, Retail, Ecommerce (Auto 11 Chennai Chennai Metro SBI Card SBI Open N/A N/A 0.09M Specific Rickshaw, Bus, Taxi in the future) 1.4M Namma Metro Travel PTO Rs.13M 12 Bangalore BMRCL Closed Metro (As of Oct 0.4M Card Specific (\20M) 2018) Bangalore Metro Coral/Platinum Debit Card PTO Metro, Retail, Ecommerce (Auto Rickshaw, 13 Bangalore ICICI Bank Open N/A N/A 0.4M ICICI Bank Unifare Specific Bus, Taxi in the future) Bangalore Metro Credit Card

Metro, Retail, Ecommerce (Auto Rickshaw, SBI Debit cum Transit PTO 14 Bangalore SBI Open Bus, Taxi in the future) N/A N/A 0.4M Card Specific

Metro, Retail, Ecommerce (Auto Rickshaw, 15 Bangalore BMTC Smart Card AXIS Bank NCMC Open Bus, Taxi, parking in the future) N/A N/A 5.13M

0.28M Hyderabad Metro Rail Hyderabad PTO Metro (Auto Rickshaw, Bus, Taxi, Rs.0.78M 16 Hyderabad Closed (As of Aug 0.22M Smart Card Metro Rail Specific Ecommerce, Retail in the future) (\1.22M) 2018) 20K Rs.1.2M Metro 0.05M 17 Kochi Kochi 1 Card AXIS Bank NCMC Open Metro, Bus, Retail, Ecommerce, parking (As of Oct (\1.87M) Bus N/A 2018)

PTO 0.16M Rs.120M 18 UP State UPSRTC Card ICICI Bank Open Bus, Retail, Ecommerce, 1.8M Specific (As of 2017) (\187M)

PTO 19 Jaipur Smart Card JMRCL Closed Metro N/A N/A 1.8M Specific

41 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Smart Cards in major cities (3/3)

▌ Some cities started to introduce NCMC compliant card after 2018.

Daily Daily # City Card Issuer Format Type Available Services # of cards Transaction Passenger HDFC Bank PTO 20 Jaipur Jaipur Metro HDFC Bank Open Metro, Retail, Ecommerce N/A N/A 18k Specific Debit Card Bus N/A PTO Rs.15M 21 Pune MI Cards PMPML Closed (Property tax, Utility bill, Parking, (Issue started 1M Specific (\23.4M) Metro in the future) from Jan 2017) N/A PTO Metro 22 Lucknow Go Smart Card SBI Closed (Issue started N/A 11K Specific (Bus, Railways in the future) from Sep 2017)

0.36M 23 Nagpur MAHA Card SBI NCMC Open Metro, Bus, Feeder Bus N/A N/A (Expected)

N/A Bus, Tax payment, Retail, 24 Bhubaneswar Odyssey Card ICICI Bank NCMC Open (Issue started N/A N/A Ecommerce, Parking from Oct 2018)

N/A One Raipur 25 Raipur Axis Bank NCMC Open Bus, Parking, Retail, Resident tax (Issue started N/A N/A Smart Card from Sep 2018)

N/A 26 Noida City 1 Card SBI Bank NCMC Open Metro, Bus, Parking, Retail (Issue started N/A N/A from Jan 2019)

27 Navi Mumbai (To be decided) HDFC Bank NCMC Open Bus, (detail to be decided) N/A N/A N/A

42 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Indian Railways: Overview

▌ Indian Railways operate across the country, with more than 1.3 million employees, daily ridership of more than 20 million. ▌ Introduced online ticketing, and planning to comply with NCMC in the future. Overview

 Foundation: April, 1853  Ministry in Charge: Ministry of Railways  No. of stations: 7,349(March, 2017)  No. of employees: 1.308M (March, 2017)  No. of passengers: Approx 2.2M/Day

Ticketing

 Regular ticket: 21M/Day  Reserved seat ticket: 1.5～2.2M/Day  Ticketing place:  Station counter  Distributing Agencies (2,000 agencies)  Post Office (270 Branches)  Internet based distributing Agencies (70,000 agencies)  Mobile (Purchasing through SMS available)  Indian Railways owns its own seat reservation and ticketing system called ”CONCERT”. The system itself is operated by Centre for Railway Information Systems, under Ministry of Railways. Their online reservation system is operated by IRCTC, a subsidiary company of Indian Railways.

Source: Indian Railways (http://www.indianrailways.gov.in/railwayboard/) Source：https://erail.in/info/railway-maps-indian-railways/1808

43 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Mumbai-Ahmedabad High Speed Railway: Overview

▌ Mumbai-Ahmedabad High Speed Railway, adopting Japanese bullet train technology, is set to connect 8 stations in Gujarat (including Ahmedabad, Surat, Vadodara). It will also work as a hub to connect various modes exists in each city.

Overview

 National High Speed Railway Corporation Limited (NHSRCL)  Headquarter: New Delhi  Project Office: Ahmedabad, Vadodara, Surat, Mumbai

 Length: 508.17km (Travel time 127mins)  Maharashtra State 155.642km  Gujarat State 350.530km  Dadra and Nagar Haveli Union Territory 2km  No. of Stations: 12  No. of depots: 2 (Thane, Sabarmati)  Technical Highest Speed: 350km/h *Commercial Highest Speed will be 320km/h  Capacity: 16 cars / 1,200 passengers (Originally 10 cars / 750 passengers)  Expected maximum No. of passengers per day  2023: 17,900/One way 2033: 31,700/One way 2043: 56,800/One way 2053: 92,900/One way

 Total project cost: \1,568B (Rs.1= \1.6)  Approximately 80% of the project cost (Excluding land acquisition cost) will be funded by Japan International Cooperation Agency (JICA)  Operation: Planned to start from 2023  Ticketing tender started to be discussed from 2018 (Outside JICA’s ODA scope)

Source: NHSRCL (https://www.nhsrcl.in/about-nhsrcl)

44 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Diamond Quadrilateral project (High speed rail network in India)

▌ “Diamond Quadrilateral” project aims to establish the high speed rail network to connect four mega cities in India, Delhi, Mumbai, Kolkata and Chennai which is expected as the candidate of smart card expansion domain in future. Project Overview

The Diamond Quadrilateral is a project of the Indian railways to establish a high speed rail network in India. The Diamond Quadrilateral will connect the four Delhi mega cities in India, Delhi, Mumbai, Kolkata and Chennai. So far 6 corridors have been identified in diamond quadrilateral.

Mumbai Kolkata Diamond Quadrilateral corridors

1. Delhi – Mumbai 4. Kolkata – Delhi 2. Mumbai – Chennai 5. Delhi – Chennai Chennai 3. Chennai – Kolkata 6. Mumbai - Kolkata

Current situation of Diamond Quadrilateral

 Government of India approved the proposal of Japan to build India's first high-speed railway Approved on 10 December 2015 between Ahmedabad and Mumbai.  Construction is expected to be completed by 2023

 Delhi Mumbai - Feasibility Study Contract awarded to a Consortium of M/s The Third Railway Survey and Design Institute Group Corporation (CHINA) and Lahmeyer International (India) Pvt. Ltd, India Under  Mumbai Chennai - Feasibility Study Contract awarded to a Consortium of M/s SYSTRA Feasibility Study (FRANCE) - RITES- Ernest &Young LLP  Delhi Kolkata - Feasibility Study Contract awarded to a Consortium of M/s INECO (SPAIN) - M/s TYPSA- M/s Intercontinental Consultants and Technocrats Private Limited

45 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion NCMC response policy in IR, NHSRCL and other Gujarat cities

▌ Vadodara and Rajkot are planning to implement smart card same as Ahmedabad and Surat. ▌ IR and NHSRCL will also follow the guideline from the Government of India to introduce smart cards.

 IR is planning to introduce smart card with paper ticket printed at Automatic Indian Ticket Vending Machine or from booking counters Railway Planning  Mumbai, Chennai & Kolkata suburban railways are sooner going to adopt (IR) common mobility card for its commuters

National High  Operation start expected in 2023 Speed Rail Following Corporation  NHSRCL will adopt One Nation One Card depending upon the guidelines Limited (NHSRCL) issued by the Government of India, NITI Aayog

Vadodara  VMC is planning to implement intelligent transit management system Municipal for its buses, metro, rail services etc. Planning Corporation  Also planning to introduce NCMC compliant and Bharat QR base (VMC) fare collection system

Rajkot Municipal  RMC is planning to launch the smart card for the payments of bus tickets Corporation Planning (RMC) in its Rajkot Bus Rapid Transit System

Gujarat State Road Transport  GSRTC has partnered with Yes bank to install over 125 Point of Sale Terminals Corporation across all its depots for digitizing the payments. (GSRTC)

46 2-1-2. Survey for transportation IC cards in other states, IR and NHSRCL which would be candidate for business expansion Challenges towards smart card expansion based on IR, NHSRCL trends

▌ The state government initiative is necessary to achieve the smart card expansion and interoperability in Gujarat state which covers ongoing/future metro and high speed railway projects, intercity bus, planned other city bus/BRT, unplanned area like auto rickshaw etc. 2018 2019 2020 2021 2022 2023~

Indian Railways Government owned transportation Planned

Implementing Mumbai-Ahmedabad HSR policy policy plan and for interoperability

Government and Ahmedabad metro, parking lot Take State owned

transportation Planned Surat metro consistency

State owned Gujarat State Road Transport Corporation transportation In service

Ahmedabad BRT, city bus, parking lot between

Surat BRT, city bus, parking lot City managed transportation Rajkot BRT, city bus Planned

Vadodara city bus Planned

Private sector Auto rickshaw etc. transportation

47 2-1-3. Survey for trends of local players which provide transportation IC card payment service Difference of smart card management between Japan and India

▌ In Japan, public transport operators (PTOs) issue their smart cards, perform clearing and settlement via Nationwide Interoperability Centre in case of journey crossing multiple transportations using card. ▌ On the other hand, in India, financial institutes (FIs) issue their smart cards, aims to achieve clearing and settlement via National Automated Clearing House (NACH) operated by NPCI in case of journey crossing multiple transportations using card. Japan India

Issuing Issuing Issuing bank bank bank Nationwide Interoperability Centre (IC Card Interoperability Center) National Automated Clearing House (NPCI)

Acquiring Acquiring Acquiring bank bank bank

PTO*1 PTO PTO PTO PTO PTO

*1: Public Transport Operator

48 2-1-3. Survey for trends of local players which provide transportation IC card payment service NCMC issuing authorities

▌ NCMC compliant card cannot be issued by public transport operators on their own, but financial institutions (banks) as prepaid, debit, and credit card. ▌ Current major NCMC issuing authorities are as below;

# Issuer Overview Major projects Card image

 Founded: 1806 State  Location: Mumbai  Nagpur Metro 1 Bank of  No. of Branches: 22,414  Noida Metro India  Largest government-owned  Hyderabad Metro commercial bank in India *1

 Founded: 1955  Ahmedabad Smart City ICICI  Location: Mumbai 2  Surat Smart City Bank  No. of Branches: 4,867  Bhubaneswar Smart City  Largest private sector bank in India

 Founded: 1993  Location: Mumbai  Kochi Metro 3 Axis Bank  No. of Branches: 3,882  Raipur Smart City  3rd largest private sector bank in India *3

*1 Source: SBI website *2 Source: MoHUA SMARTNET「COMMON CARD PAYMENT SYSTEM A step towards green travel *3 Source: Axis Bank Website

49 2-1-3. Survey for trends of local players which provide transportation IC card payment service Automatic Fare Collection system vendors

▌ In the competitive AFC market with existing global vendors, Indian vendors are also emerging as they can offer solutions at very low prices, where differentiation of solution is much required.

Head- Sales Major projects Market # Vendor Founded Employees Quarter [US$] (Awarded year)

1 Datamatics Global Services Mumbai 1975 10,000 131M Lucknow (2016)

2 ASIS Elektronik ve Bilişim Sistemleri Istanbul 2007 N/A N/A Kochi (2015)

Kolkata (2009) Alco-  3 Indra Sistemas 1993 40,000 3.4B Navi Mumbai (2016) bendas  Delhi (2007) Chennai (2011) 4 Nippon Signal Tokyo 1928 1,278 742M  Metro Ahmedabad (2018) Delhi (2008) Bangalore (2009) 5 Samsung SDS Seoul 1985 22,871 8.2B  Jaipur (2012) Hyderabad (2013) Noida (2017) 6 SC SOFT Singapore 2009 N/A N/A  Nagpur (2017) La Delhi (2001, 2004, 2014) 7 Thales 1893 60,820 17.2B  Défense Gurgaon (2014)

8 AGS Transact Technologies Mumbai 2002 9,925 186M Amritsar (2017) Ahmeda 9 AMNEX Infotechnologies 2008 400 N/A Navi Mumbai (2017) bad  Bus/BRT Ahmedabad (2017) 10 NEC Tokyo 1899 109,390 25.6B Surat (2017) Hubli (2016)

50 2-1-3. Survey for trends of local players which provide transportation IC card payment service Business model for NCMC implementation (1/2)

▌ Instead of bearing all the cost to implement the NCMC system, a city government gives a financial institution exclusive card issuing and operation right, then the financial institution undertakes to implement, operate and maintain the smart card use environment (PPP model). ▌ City government or transport operator cannot accept other city smart card issued by other bank because of the exclusive contract with the specific bank.

 Exclusive card issuing and operation rights for 7 years  Agreed payment for portion of the revenue from the card services in public sector including public transportation • Transaction fee City government Card issuing / Transport operator bank

 Card Issuing and Operation  Improvement of smart card environment (implementation, operation and maintenance (O&M) of information systems like CCPS*1 and AFC*2, distribution of validators to more than 1,000 service points, helpdesk, promotion etc.）  Royalty fee for exclusive card issuing and operation rights • AFC System implementation • AFC System implementation fee • AFC System • AFC System O&M fee O&M for 7 years

AFC vendor

*1: Common Card Payment System, *2: Automated Fare Collection（smart card base fare collection system） Source: Created from “RFP for Open Loop Smart Card Common City Payments System, AMC” and “RFP for Selection of Financial Institution for Open Loop Smart Card Common City Payments System, SMC”

51 2-1-3. Survey for trends of local players which provide transportation IC card payment service Business model for NCMC implementation (2/2)

▌ In another model, financial institution bears the cost of implementation, operation and maintenance of CCPS*1 and AFC*2, and recovers own investment with transport operator by revenue sharing, but the profitability is questioned as no guarantee of smart card user expansion despite huge investment burden.

 Exclusive card issuing and operation rights  Agreed payment for portion of the revenue from the card services in public sector including public transportation • Revenue Share City government Card issuing / Transport operator bank

 Card Issuing and Operation  Improvement of smart card environment  Royalty fee for exclusive card issuing and operation rights

Examples of recent revenue-sharing models • AFC System • AFC System Card issuing bank AFC vendor implementation implementation fee Kochi Metro ASIS Elektronik ve • AFC System • AFC System O&M Axis Bank (Operated since Jun, 2017) Bilişim Sistemleri O&M fee

Noida Metro State Bank of SC SOFT AFC vendor (Operated since Jan, 2019) India

Nagpur Metro State Bank of SC SOFT (Under construction) India

*1: Common Card Payment System, *2: Automated Fare Collection（smart card base fare collection system）

52 2-1-4. Survey for trends of introduction status for payment service besides transportation use Trend of cashless society in India

▌ The Government of India (GoI) formulated “Digital India Programme” in August, 2014 and abolish high-value banknotes in November, 2016 to promote digitalization and realization of cashless society. ▌ As part of that, GoI promotes use of electronic payment in all aspects of civic life such as public transportation, retail stores, and gas stations, etc. Government Initiatives for Promoting Digital & Cashless Economy

Target # Policy content

GoI is providing free accidental insurance cover of up to USD 14,297 for passengers 1 purchasing online tickets of Indian Railways (IR)

IR provides 5% discount applied to paid services e.g. catering, accommodation etc. being Railway 2 offered by railways through its affiliated entities/corporations through electronic payment

From 1st June 2017, GoI had started providing discount of up to 0.5% for commuters 3 paying through electronic payment for monthly or seasonal tickets of Suburban Railways

In the year 2016-17, the commuters were rewarded 10% discount over the usage of Highway 4 RFID card or FasTag*1 at toll plazas for payment

Less than USD 1.43 will be charged by the public sector banks for renting PoS terminals, Retail 5 Micro ATMs & mobile POS to the smaller merchants

Petrol The Petroleum public sector units (such as Indian Oil etc.) is offering 0.75% discount of 6 station sale price to the commuters paying through electronic payment

*1: RFID tag base electronic toll collection system operated by the National Highway Authority of India (NHAI) Exchange rate : 1 USD – 70.12 INR

53 2-1-4. Survey for trends of introduction status for payment service besides transportation use Trend of mobile payment in India

▌ Mobile QR code payment is growing rapidly mainly at retail stores in urban area, but not same in transit domain as it’s use scene is limited to ticket purchase and recharge to smart card etc. ▌ Although it is expected the expansion of mobile payment use in future, smart card would be still mainstream of transit payment as there are network instability and performance in rush hour in mobile payment. Social background for mobile payment usage acceleration

Population 1.25B (2015) → 1.35B (2020)

No. of smart phone users No. of Internet users 240M (2015) → 520M (2020) 300M (2015) → 650M (2020)

Major mobile payment service provider in India # Company Founded Year Overview

Largest mobile payment service provider in India More than 230 million users, 10 million merchants 1 Paytm 2010 Payment for mobile phone charge, utility and Retail stores etc. Recharge service for smart card in Delhi, Mumbai, Hyderabad metros

Major mobile payment service provider More than 100 million users, 3 million merchants 2 Mobikwik 2009 Payment for mobile phone charge, utility and Retail stores etc. Recharge service for smart card in Mumbai metro

54 2-1-4. Survey for trends of introduction status for payment service besides transportation use Trend of payment service in India: NPCI

▌ National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments in India which was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks Association (IBA) to establish robust payment platform nationwide. ▌ NPCI developed UPI as the common payment platform for financial institutions (FI) and mobile payment service providers, and provides payment services such as smartphone applications running on UPI and cooperation with Aadhaar - Indian national ID system etc.

# Service Service contents Started from

 Mechanism that carries out remittance / in-store payment etc. from Unified bank account by using smartphone 1 Payments  Provides supporting application respectively to approx. 150 FIs Apr, 2016 Interface(UPI)  Use Virtual Payment Address acquired from the application  Support dynamic QR code including individual transaction info.

 NPCI smart phone application for remittance / payment / billing Bharat using UPI 2 Interface for Dec, 2016  Manages multiple bank accounts integrally Money(BHIM)  Available for more than 90 FIs  Payment service using Aadhaar fingerprint authentication and UPI BHIM Aadhaar  Merchants set up smart phone application and authentication device 3 Dec, 2016 Pay  Users pays by direct debit designating FI which owns user’s account and perform fingerprint authentication by national ID

 Unified QR code standard that NPCI, FIs, VISA and Mastercard participate and formulate 4 Bharat QR  Users read QR code at retail store by smart phone application Feb, 2017 provided by FI and pay through bank account or account-linked card  Support static QR code not reflecting individual transaction info.

55 2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI Possibility of utilizing big data with AI technology

▌ By multiplying data obtained from common mobility card with other data such as weather and route search data, it enables not only to improve public transportation services but also to ease traffic congestion, reduce air pollution and revitalize the regional economy.

Improve public Reduce traffic congestion Revitalize local economy transport service and air pollution

Resource Schedule Forecast / Business planning Allocation Modal shift promotion Targeting Optimi- Warning of based on travel Optimi- advertisement zation Congestion by Park & Ride service demand forecast zation

Forecast of passenger movement demand / Operation optimization by dynamic pricing by big data utilization

Operation and User Data Other Data

Route search Ticket sales/ Weather data Operation data reservation data data Other card Event announcement usage data OD data *1 Commuter pass data sales data Other data SNS data like GPS etc.

*1: Source: An Effective Use of Tokyo Metro Passengers Flow by Visualization of Smart Card Ticket ‘PASMO’ Origin-Destination Data for Public Transport Network to be Sustainable （https://pdfs.semanticscholar.org/dfc6/1e2ed058c83e48fe3436d0d78422beed8031.pdf)

56 2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI Possible application in Gujarat state (1/3)

▌ Big data accumulated from transportation common mobility card business can be utilized to prevent accidents due to congestion at big event by forecasting sudden movement demand. Shanghai Metro is doing the same efforts at the time of football game. ▌ There will be the similar needs as the world's biggest cricket stadium will be built in Ahmedabad.

Case of Shanghai Case of Ahmedabad

Shanghai Metro is The world's largest cricket carrying out operation stadium "Sardar Patel Gujarat plan and personnel Stadium (Motera Stadium)“, allocation according to which has 63 acres (more the travel demand at the than five times the size of the event such as soccer Tokyo Dome) and 110,000 game and concert etc. people capacity, will be built and accessed from the MEGA Hongkou Football Stadium*1 station.

Motera Stadium*3

Motera Stadium Station

Metro Passenger Flow Simulation*2

MEGA Route Map *4 *1: Source: Shanghai Government（http://www.shanghai.gov.cn/shanghai/node27118/node27968/node26489/userobject22ai36135.html） *2: Source: Zhiyuan, H., Liang, Z., Ruihua, X., & Feng, Z. (2017, September). Application of big data visualization in passenger flow analysis of Shanghai Metro network. In Intelligent Transportation Engineering (ICITE), 2017 2nd IEEE International Conference on (pp. 184-188). IEEE. *3: Source: Gujarat Cricket Association (https://www.gujaratcricketassociation.com/page/motera-stadium) *4: Source: MEGA「Route Map」（ http://www.gujaratmetrorail.com/route-map-2/）

57 2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI Possible application in Gujarat state (2/3)

▌ Analyzing Big Data such as smart card usage, weather, road traffic information, etc. dynamically realizes optimal pricing and matching of parking lots and cars to prevent traffic congestion. ▌ Both Ahmedabad and Surat operate parking lots which can expect effective Park & Ride service with Big Data.

Modal shift promotion by Park & Ride service  Reduce congestion and air pollution

At the Urban Mobility India Conference & Expo on November, 2016, CEPT University proposed future During congestion, possibility of Park & Ride set high price to service in Ahmedabad. lead cars to the suburbs

Station City Centre

Park & Ride To improve revenues and occupancy rates, set high price during congestion, while set low price when no Usage Data congestion

Dynamic Pricing Matching (Reservation)

Transportation Data Weather Data

Optimize parking lot price by analyze Big Data to predict traffic situation with AI

58 2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI Possible application in Gujarat state (3/3)

▌ Dynamic pricing by big data analysis enables to differentiate prices of public transportation depending on peak and off season, and to set prices according to ticket reservation situation, which leads to balance demand vs. supply and to ease congestion and improve service quality. ▌ There will be possibility of introduction ticket reservation system utilizing dynamic pricing engine for "Mumbai-Ahmedabad High Speed Railway (MAHSR) Corridor“ and new service development using big data for revitalizing regional economy around new stations.

Application example of dynamic pricing in each industry *1 Mumbai-Ahmedabad High Speed Railway Corridor

Industry Issue Solution • JICA ODA loan agreement for “Project for Construction of Mumbai– Ahmedabad High Speed Rail (I)”(Approx. 89.5 billion JPY) was signed in September, 2018. It is to construct more than 500 Km Depending on the traffic In tourist spots, traffic railway between Mumbai and Ahmedabad. congestion, charge to cars to Public jams occur on weekends In order to enhance the convenience of the high-speed railway, alleviate congestion (road • and sightseeing seasons various policies such as development of the area around the pricing） station and improving access to the station are being studied with involving local governments. Fresh food items are still Sell items with big discount Retail unsold at near closing time sales

Too many travelers in long Increase airline fares during vacation, etc., while much Airline the busy season to shift less travelers in a quiet demand to quiet seasons period

In sightseeing spots, Depending on situation, set a demand concentrated on discount accommodation plan Hotel weekends and consecutive for weekdays only, induce holidays, while it is quiet demand on weekdays on weekdays

*1: Source: Nomura Research Institute Route map of MAHSR（plan）*2 *2: Source: JETRO (https://www.jetro.go.jp/biz/areareports/2018/9fe93efaf0614b86.html)

59 Table of contents

1. Project overview 1-1. Background and objective 1-2. Target area of the study 1-3. Methodology of the study 1-4. Project structure 2. Results of the project 2-1. Local needs and issues towards Common Mobility Card expansion 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state 2-1-2. Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion 2-1-3. Survey for trends of local players which provides transportation IC card payment service 2-1-4. Survey for trends of introduction status for payment service besides transportation use 2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI 2-2. Business feasibility 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues 2-2-2. Examination on issue and solution related to localization of proposed technology for making business model 2-2-3. Examination of strategic issues and countermeasures 2-2-4 Business model development and its elaboration 2-3. Implementation of reporting seminar 2-3-1. Reporting seminar in Gujarat 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues Proposed activities for Gujarat state

▌ Set the themes to be required in Gujarat state based on survey results like central and state government’s policies, technical and commercial issues of NCMC. Proposed activities Survey results for Gujarat state P25~27 Although smart cards introduced in Ahmedabad and Surat adopt the same data format and compliant with NCMC, they are not interoperable because of exclusive contracts with banks for card issuing, Coordination with Survey for Clarification of Metro is also required in the future to achieve city-wide interoperability. transportation IC P28~29 implementation cards in Ahmedabad, Smart card users are not increasing as much as expected because of limited usage scenes and security policy of Surat cities in concerns in Ahmedabad and Surat. interoperability Gujarat state P30 Gujarat state promotes the policy “Mobility Led Urban Development” and makes efforts on realizing seamless coordinated by urban transportation and easing traffic congestion through parking environment improvement. central, state P31~34 Central government bodies like MoHUA, MeitY, MoF and NITI Aayog promotes standardization of and municipal governments Survey for NCMC eco system to reduce implementation cost and realization of interoperability. transportation IC P35~37 RuPay NCMC specification was formulated by NPCI and applied to some cities like Ahmedabad and Surat, but it’s cards in other states, not feasible to realize interoperability because of insufficient definition of transit service data format. IR and NHSRCL which would be P40~43 State government initiative is necessary to realize interoperability considering the future expansion of candidate for smart card to HSR, metro, local train and other cities’ public transportations. Expansion of business expansion smart card P44~48 Many smart cards are introduced to each city, and some states have multiple cards same as Gujarat usage scene to state. realize smooth Survey for trends of P52 Exclusive contracts between bank and municipal corporation for card issue right inhibits transit local players which interoperability realization. provides transportation IC card payment P53 There are some tenders that bank, card host system vendor and AFC vendor co-bid and try to recover service their investment by revenue share model with PTO, but its profitability is questioned. P55 Mobile payment is now rapidly expanding as new option mainly at retail stores in urban areas and Survey for trends of Urban introduction status for introduced to transport use limitedly like ticket purchase and smart card top-up. For the time being, payment service besides smart card remains as main media for transport payment considering network instability and transport transportation use performance in rush hour etc. optimization and urban Examination on P57~60 development potential utilization of It can contribute not only to transit service improvement but ease of traffic congestion, air pollution utilizing big data accumulated control and regional economy vitalization by combining smart card data and other data like weather, in transportation transport data common card business route search history etc. using AI

61 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues To-be and business opportunities

▌ Through supporting themes required in Gujarat state based on smart card and AI technologies and experiences in Ahmedabad/Surat cities, there would be business opportunities leading to dissemination of interoperability and realization of urban development utilizing its data. Proposed activities for Gujarat state To-be Business opportunities

Clarification of State/city policy and (Government activities) implementation plan become clear • Review on exclusive contract with bank and compensation policy of against GoI’s • Card data format (new standard from central gov. vs. existing) interoperability standardization policy • NCMC implementation plan to Gujarat state and each city coordinated by • Migration policy and central, state plan for existing and municipal NCMC implemented Support activity for policy and plan making governments operators based on experience and knowledge in Ahmedabad/Surat • Scope and Plan for new NCMC implementation Expansion of Expansion of smart card base fare collection system to other cities and intercity buses smart card NCMC is expanded to usage scene to major transportations realize smooth and widely accepted by Expansion of smart card base fare collection system transit citizens based on the to new operators like parking, auto rickshaw and ferry etc. above policy and plan

Government works on improving/innovating Urban operation and Schedule optimization by analyzing operation and user data transport management of optimization transportations and and urban Urban transport dashboard system implementation new business creation development and operation & maintenance in urban development utilizing utilizing accumulated transport data Target marketing based on user’s behavior transit data

Expected business opportunities

62 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues Necessity of Common Platform

▌ NCMC initiative is considered to improve convenience of users and promote cashless economy. ▌ The government needs to bear the cost for implementing, operating, and maintaining new transport operators’ AFC system as a current business model, which may take time to develop new public transportations and as a result, it will be an obstacle for realizing the modal shift.

Issues which need additional countermeasures Cost covered by Gov （ ⇒Cost mitigated by common platform）

AFC system implementation cost of each PTO Serious congestion Cost and time are required to start and new public transportation modes Operation and maintenance cost air pollution for AFC system of each PTO Public transportation means AFC system upgrade to adopt are not sufficient new technology if necessary

Various Cards Users are not willing to use Modal shift is are in use public transportation not realized Reduced user convenience

Bring various cards

Inconvenience during transit

NCMC initiative and One Nation One Card policy can be a solution for this issue

63 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues Measures to Promote Card Use (Example of Other Countries)

▌ Other countries representative smart cards provide “transit discount” as promotion policy, but Gujarat state is not currently doing the same, which would be effective measure of promotion. ▌ Common platform enables transit discount introduction without much investment from multiple operators. Promotion Measures City/ Card Dissemination Expansion of use for Start Discount according to Name situation purposes other than Transit Discount year user attribute public transportation Oyster London/ 90% of the use of It cannot be used for other Several discount are Transit discount is available Card 2003 subway, bus, and than public transportation. available (30% discount as “Hopper fare”. For transit railway is paid by for student in London, free within one hour, one ride Oyster Card for handicapped and fare is discounted. (0.5~0.7 million elderly people, discount cards are issued for unemployed, retired monthly). army, etc.) Hong More than 35 million Tunnels and road tolls, Discount for student is Multiple transit discount is Octopus Kong/ cards are issued and parking lots, admission available though there is available (ex. for subway Card 1997 99% people in Hong cards to houses and no discount for children and express train transit Kong use it. commercial facilities, card and elders card) within 1 hour, subway fare educational institutions, is free). shopping, etc. T-money Seoul/ More than 37 million Taxi, convenience store, Several discount are Multiple transit discount is Card 2004 cards are issued. In fast food, shopping, etc. available (basic subway available (ex. fare is the capital area, charge discount for discounted between the bus, 98.9% and 96% general card holders, subway, metropolitan usage in subway and about 40% discount for Korean railroad when bus respectively. youth card holders, etc.) transferring within 30 mins) Janmitra Ahmeda- 0.16 million cards Parking lot, tax payment, 10% discount for card “Transit Discount" has not Card bad/ are issued. shopping, restaurant, holder, 40% discount for been introduced. 2017 Kankaria lake entry etc. student and handicapped person

64 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues Example of Efforts Toward Realization of Modal Shift (Example of Jakarta)

▌ In order to realize modal shift, various measures are required to enhance the convenience of public transport while limiting the use of vehicles. To implement various measures, it is important to make effective use of limited resources rather than each city and operators individually takes own measures.

Measures for Modal Shift Example of Jakarta Ride Share 3 on 1 Reduction of Use

Vehicle No Use Day Number plate system

Time) Road Pricing ERP system (under planning) Load-

Leveling Road) Traffic Info. Smartphone Application (google map) …

Bus etc. Providing Implemented Public 【Asset Management】 BRTS Transport “Keeping asset availability”

Public Public Transport Modes MRT/LRT Under construction

Seamless transfer 【Passenger Management】 Seamless fare adjustment “Meeting passenger’s demand: Enhancing wants to go to its destination by reasonable price, Service Seamless Operation within short time, and w/o stress.” Level Operation info.

UX (User Experience) To be considered in the Future

65 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues Overall image of technical proposal

▌ Smart City Data Platform provides cloud-base fare collection system to realize smart card interoperability and analysis engine to analyze collected data and various application utilizing the result of analysis as a common platform in Gujarat state and cities.

Attractive Integrated Comprehensive Public Transportation Multi-Modal Traffic Control Transit Hub

Smart City Data Platform Preventive Drivers Traffic Smart Schedule User Behavior Business Maintenance Profiling Monitoring Interchange Optimization Analyzer Intelligence

Smart service platform and APIs

Big data analytics by AI engine

Smart card base fare Smart card base fare collection system (on cloud) collection system (on premises)

66 2-2-2. Examination of issue and solution related to localization of proposed technology for making business model

▌ In response to local cost constraints, it is required to reduce the burden of initial investment and total cost by providing a cloud system based on a compact system developed for Japanese government-designated cities. ▌ As for application scenarios utilizing AI, hypotheses and verifications should be conducted in collaboration with local solution development base and university etc. to respond properly to needs of local social problem solution.

Services by Smart City Data Platform Issues for localization Solutions

 Base on a compact system for  A large-scale system used in Japan ordinance-designated cities in does not match India in terms of Japan and reduce operation cost by cost training and utilizing local human Smart card base fare  Network infrastructure is not so resources collection system reliable as in Japan  System design considering local (on cloud)  Payment services and technological environment, such as multiplexing innovation are rapidly progressing communication networks, in India (Environment is likely to optimization of data size, etc. change).  System design on the premise that new technologies are to be utilized

 Grasp needs and verify hypothesis  Practical data use requires to through collaboration with local understand local needs and solution development base reality of each region (The needs  Conduct enough training and OJT to Big data analytics and are not the same as Japan) nurture local human resources who  For data analysis, human resources utilization by AI engine understand both data utilization with with certain skills are also required AI and local context collaborating (ex. to make a hypothesis with local academic institution considering implication of data) etc.

67 2-2-3. Examination of strategic issues and countermeasures Collaboration with government to utilize data

▌ In order to contribute to urban development in Gujarat state while not only providing IT system but also creating business utilizing data, it is important not to participate in tender as vendor but to provide service by joint organization closely collaborating with the government.

Existing tender-base business Joint investment with government

Government Government NEC

Service Invest Invest IT Service IT Service (joint operation) Service (tender) Joint Management Organization Service

PTO*1 PTO NEC PTO PTO

Strategic issues: Countermeasure: Data usage restrictions and concerns Joint operation with the government

 The ownership of system and data is  By participating jointly with government-funded basically in government or transport organizations, it becomes easier to conduct operator, so it is not easy for vendor discussions such as creation of new services to explore new data utilization using technology such as AI  IT vendors will consolidate the data  Government-funded organization will be an utilized for urban development and operation form easily accepted from local by its there may be risk of concern or supervising systems and data repulsion of "Data Colonization"  NEC has established a DMICDC Logistics Data Services Limited in collaboration with the Delhi Mumbai Industrial Corridor Development

*1: Public Transport Operator Corporation and is implementing similar efforts

68 2-2-3. Examination of strategic issues and countermeasures Example of Joint Investment by Government and Private Entity: DIMTS Overview

▌ Delhi Integrated Multi-Modal Transit System Ltd. (DIMTS) is an equal equity (50:50) joint venture of GNCTD*1 and IDFC Foundation with a focus on urban transportation. ▌ DIMTS provides Concept to Commissioning, Consultancy, Intelligent Transport System solutions and Urban Transport asset management services*2. DIMTS Overview DIMTS Services

• Founded：April, 2006 by GNCTD and IDFC Foundation • Headquarters：New Delhi • Key Person： M Ramsekhar (MD & CEO) • Clients：  Department of Transport, GNCTD  Delhi Transport Corporation (DTC) Transport Planning Transportation Technology and IT Solutions  New Delhi Municipal Council (NDMC)  Municipal Corporation of Delhi (MCD)  Public Works Department (PWD), GNCTD  Mumbai Metropolitan Region Development Authority (MMRDA) • Members： Intelligent Transport Systems Railway Engineering  International Association of Public Transport (UITP)  Institute of Urban Transport (India) Operations Management  Consulting Engineers Association of India (CEAI) • Partners：  Transportation Research and Injury Prevention Programme (TRIPP) Infrastructure Development &  Transport Research Laboratory (TRL) Transaction Advisory Engineering  United Nations Office for Project Services (UNOPS)

*1: GNCTD： Government of National Capital Territory of Delhi *2: Source: DIMTS Website (https://www.dimts.in)

69 2-2-3. Examination of strategic issues and countermeasures Example of Joint Investment by Government and Private Entity: DIMTS Project

▌ DIMTS operates both public transportation such as BRT and transportation IC card business. ▌ An example of DIMTS projects is the introduction of electronic ticketing machines and AFC system to the Department of Transportation Government of National Capital Territory of Delhi.

Major Project Areas for DIMTS

BRT Urban Road Vehicle Tracking Ticketing Smart card Railway Transit Hub Transport

Client : Transport Department, Government of NCT and Delhi (GNCTD)

Automatic Fare  Govt. of NCT of Delhi (GNCTD) has nominated DIMTS as the nodal agency for implementing the Collection System Automatic Fare Collection System (AFCS) Project (AFCS)  The Project consists of designing, developing, implementing, operating and maintaining and facility management of Automatic Fare Collection System and value added services based on smart cards which will be acceptable in multiple travel modes including DTC buses, private buses, metro rail, Light Rail Transit, Mono Rail

Client : Transport Department, Government of NCT and Delhi (GNCTD)

Electronic Ticketing  As part of the Automatic Fare Collection System (AFCS) project, DIMTS has developed customized Machines (ETMs) Electronic Ticketing Machines for the first phase of the AFCS project  The ETMs offered by DIMTS are smart card enabled devices with inbuilt GPRS*1 modules

*1：GPRS is the 2.5th generation data communication system (2.5G) using the "GSM" (2G) network

70 2-2-3. Examination of strategic issues and countermeasures Example of Joint Investment by Government and Private Entity: UMTCL Overview

▌ Urban Mass Transit Corporation Limited. (UMTCL) is a unique partnership between Ministry of Housing and Urban Affairs (MoHUA), Government of Andhra Pradesh (GoAP), Andhra Pradesh State Road Transport Corporation (APSRTC) and Infrastructure Leasing and Financial Services Limited (IL&FS). ▌ UMTCL provides advisory services for the entire project life cycle ,i.e., from conceptualization, planning and design to implementation, operation and maintenance of urban transport projects *1. UMTCL Overview UMTCL Services

 Founded by:  Ministry of Housing and Urban Affairs  Government of Andhra Pradesh  Andhra Pradesh State Road Transport Corporation  Infrastructure Leasing and Financial Services Accessibility Planning for Limited (IL&FS) Metro Stations Planning & Designing of Footpaths

 Headquarters: New Delhi Accessibility & Mobility Planning  Key Person: Mr. Ajai Mathur (MD & CEO) for various transit  Clients:  Surat Municipal Corporation  Kochi Metro Rail Limited  Rajkot Municipal Corporation  Ahmedabad Urban Development Authority  Calcutta State Transport Corporation  Andhra Pradesh State Road Transport Planning & Implementation Parking Policy Formulation Corporation of Intelligent Transport Systems

*1: Source: UMTCL Website (https://www.umtc.co.in)

71 2-2-3. Examination of strategic issues and countermeasures Example of Joint Investment by Government and Private Entity: UMTCL Project

▌ UMTCL provides various services in the urban transport planning field, for example, Kochi Metro Rail Limited (KMRL) in Kerala state and BRTS in Amritsar city in Punjab state*1.

UMTCL Projects

Kochi Metro Rail Limited Amritsar BRTS

 Client:  Client: Kochi Metro Rail Limited Punjab Bus Metro Society  Location:  Location: Kochi City, Kerala State Amritsar City in Punjab State  Services from UMTCL:  Services from UMTCL: Design transit oriented development plan across major Design , Securing approvals, tendering and project transit by corridors Geographic Information System management consultancy (GIS) based mapping  Project Overview:  Key Offerings from UMTCL: 31 Km Bus Rapid Corridor was proposed across  Designing multi modal integration, non-motorized Amritsar transport & direct connectivity routes for the  Key Offerings from UMTCL: commuters  Complicated road over bridge was designed for  Revenue generation model is the key component connecting North & South part of Amritsar City considered before the design  A public bike sharing program along with cycle tracks and auto rickshaw stops was designed  Additional Projects awarded by Kochi Metro Rail  Project Cost: Limited to UMTCL: USD 70.60 million (Exchange rate : 1 USD – Rs. 70.12) Comprehensive Mobility Plan & Parking Master Plan  Location: Greater Kochi  Key Offerings from UMTCL:  Design suitable transport modes covering cycle, ferry, bus, metro & walking zones

*1: Source: UMTCL Website (https://www.umtc.co.in)

72 2-2-4. Business model development and its elaboration Supposed Revenue Model

▌ 3 revenue models can be considered according to ownership of system/data and investment capacity – ①System impl. model for large scale smart card fare collection system, ②Service model for mid-small scale, and ③SPV model for data utilization scenario.

System impl. model Service model SPV model Government/ Government/ Government/ Transport operator Transport operator Transport operator

Common Service usage Platform Fee Service System System Common Service usage Joint Impl. and Impl. and Platform Fee Management Organization O&M O&M cost Service System System Impl. and Impl. and O&M O&M cost

NEC NEC NEC

Government / transport operator NEC as the service management Government / transport operator as the service management body body to build/operate the common and NEC as joint management procuring vendor to build/ operate platform by own investment and body where both parties equally the common platform collect service usage fee invest to operate the service Suitable for large cities with great Suitable for mid-small cities as less Maximum utilization of vendor command and control authority burden and rapid implementation knowledge with less investment despite huge burden and available Possibility of limited authority of investment required System and data managed under decision making by government / vendor control transport operator

Large scale Mid-small scale Data utilization smart card fare collection smart card fare collection

73 2-2-4. Business model development and its elaboration Direction of future activities

▌ NEC aims to establish the business model for interoperability and its data utilization in Gujarat state and expand it to other state/cities and even adopt to high-speed railway ticketing system.

Establish business model Expansion to other state/cities in Gujarat state  Approach with differentiating factors such as smart Sophistication of Urban Transportation Utilizing Data card base ICT system assumed its standardization led by central government and sophistication of urban transport and city development utilizing data  Candidate such as Maharashtra and Uttar Pradesh states as multiple smart cards introduced same as Gujarat

Ahmed- Surat abad NHSRCL ticketing system (Submitted EOI in June, 2018, Under RFP preparation)  Achieve interoperability among Ahmedabad, Surat and Vadodara  Approach to tender for ticketing system in line with P government policy to connect high-speed railway and urban transport smoothly at those major stations as Vadodara Rajkot Integrated Multi Modal Transit Hub

Interoperable Smart Cities Upgradation of business model  Appeal the effect through PoC in expansion candidate cities and modes  Expansion of data utilization scene (intercity bus, parking, auto rickshaw etc.)  Contribution from urban transport to urban development

74 Table of contents

▌ NEC conducted the reporting seminar inviting key stakeholders like Principal Secretary of Urban Development, Urban Housing Department, Government of Gujarat, Deputy Commissioners from Ahmedabad and Surat Municipal Corporations.

Title Reporting Seminar on Feasibility Study of Common Mobility Card Business in Gujarat, India Date & Time Feb 1, 2019 (Fri) 10:00~14:00 Location Hyatt Regency Ahmedabad 10:00~10:30 Welcome Address 10:30~11:15 Inaugural Session 11:15~11:30 Networking Tea Break Program 11:30~12:00 Presentation by Industry Expert 12:00~13:00 Presentation by NEC 13:00~14:00 Networking Lunch Break Total 30 persons: Government of Gujarat, Ahmedabad Municipal Corporation, Surat Municipal Corporation, Participants Gujarat Metro Rail Corporation, Gujarat Industrial Development Corporation, CEPT University, World Resources Institute India, ICICI Bank, PricewaterhouseCoopers Private Limited, JETRO

NEC received the encouragement letters from Government of Gujarat (GoG) and Surat Municipal Corporation (SMC) that NEC would contribute their urban development and transport improvement by utilizing smart card and data analysis technologies. Expected to receive the same from Ahmedabad Municipal Corporation (AMC). 3 key bodies - GoG, AMC and SMC could share the recognition towards Common Mobility Card realization.

76 2-3-1. Reporting seminar in Gujarat (2/2)

▌ NEC stated the proposal based on the survey result to Government of Gujarat (GoG) and received positive feedbacks from state/city government stakeholders.

Speech/Presentation Major Remarks

 Expression of appreciation for the stakeholders’ support Welcome Address  Introduction of NEC's vision, overseas and Japanese urban transport initiatives over 30 NEC years, and experiences in India mainly in Gujarat state as the background of this project.

 City government initiative for NCMC in bus/BRT, currently issuing 2.2 lakhs Janmitra Introductory Speech cards Ahmedabad Municipal Corporation  AMC supports NEC to realize Common Mobility Card including metro, other modes

 Expression of appreciation for holding the seminar as smooth mobility is important factor of smart city Keynote Address from Chief Guest  State government initiative for promoting station area development and revenue loss Government of Gujarat burden policy etc.  Expectation on NEC technology and solution to play crucial role for Common Mobility Card realization in Gujarat state

Presentation by Industry Expert  Introduction of NCMC overview comparing the traditional closed loop cards only PricewaterhouseCoopers Pvt. Ltd. available in specific transportation

 Report the current issues and expected direction to achieve Common Mobility Card in Presentation by NEC Gujarat state with case studies in Japan and overseas NEC  Appeal of data utilization possibility as well to contribute Mobility Led Urban Development led by GoG

77 Abbreviations (1/2)

# Abbreviation Formal Name # Abbreviation Formal Name 1 ADB Asian Development Bank 30 FI Financial Institution 2 AFC Automatic Fare Collection 31 GDP Gross Domestic Product 3 AI Artificial Intelligence 32 GIDC Gujarat Industrial Development Corporation 4 AIIB Asian Infrastructure Investment Bank 33 GMRC Gujarat Metro Rail Corporation 5 AJL Ahmedabad Janmarg Limited 34 GNCTD Government of NCT and Delhi 6 AMC Ahmedabad Municipal Corporation 7 AMTS Ahmedabad Municipal Transport Service 35 GoAP Government of Andhra Pradesh 8 API Application Program Interface 36 GoG Government of Gujarat Andhra Pradesh State Road Transport 37 GoI Government of India 9 APSRTC Corporation 38 GPS Global Positioning System 10 ATM Automated/Automatic Teller Machine 39 GSRTC Gujarat State Road Transport Corporation 11 AUDA Ahmedabad Urban Development Authority 40 HMC High Mobility Corridor 12 BHIM BHarat Interface for Money 41 HSR High Speed Railway 13 BOQ Bill Of Quantity 42 IAS Indian Administrative Service 14 BRTS Bus Rapid Transit System 43 IC Integrated Circuit 15 CBT Card Base Ticketing 44 ICT Information and Communication Technologies 16 CCPS Common Card Payment System Centre for Development of Advanced Infrastructure Leasing and Financial Services 17 C-DAC 45 IL&FS Computing Limited 18 CEO Chief Executive Officer 46 IoT Internet of Things 19 CHS Card Host System 47 IR Indian Railways COuntrywide Network of Computerised 48 IRCTC Indian Railway Catering and Tourism Corporation 20 CONCERT Enhanced Reservation and Ticketing International Organization for Standardization / 49 ISO/IEC 21 CSTC Calcutta State Transport Corporation International Electrotechnical Commission 22 CTO Chief Technical Officer 50 ITS Intelligent Transportation System Delhi Integrated Multi-Modal Transit System 23 DIMTS 51 JETRO Japan External Trade Organization Limited 52 JICA Japan International Cooperation Agency Delhi Mumbai Industrial Corridor Development 24 DMICDC 53 KMRL Kochi Metro Rail Limited Corporation 54 KYC Know Your Customer 25 DTC Delhi Transport Corporation 26 EMV Europay, Mastercard, and Visa 55 LRT Light Rail Transit 27 EOI Expression Of Interest 56 LVP Low Value Payments 28 ERP Enterprise Resources Planning 57 MAHSR Mumbai-Ahmedabad High Speed Railway 29 ETM Electronic Ticketing Machine 58 MD Managing Director

78 Abbreviations (2/2)

# Abbreviation Formal Name # Abbreviation Formal Name Metro-Link Express for Gandhinagar and Quick Specification for Payment Application 59 MEGA 88 qSPARC Ahmedabad of RuPay Chip Ministry of Electronics and Information 60 MeitY 89 RBI Reserve Bank of India Technology 90 RFID Radio Frequency IDentifier 61 METI Ministry of Economy, Trade and Industry 62 MoF Ministry of Finance 91 RFP Request For Proposal 63 MoHUA Ministry of Housings and Urban Affairs 92 RMC Rajkot Municipal Corporation 64 MoR Ministry of Railways 93 RuPay Rupee Payment 65 MoRTH Ministry of Road Transport and Highways 94 SBI State Bank of India 66 MoUD Ministry of Urban Development 95 SCADL Smart City Ahmedabad Development Limited 67 MRT Mass Rapid Transit 96 SCDP Smart City Data Platform 68 MTS Mass Transit System 97 SEZ Special Economic Zone 69 NACH National Automated Clearing House 70 NCMC National Common Mobility Card 98 SMC Surat Municipal Corporation 71 NCR National Capital Region 99 SMS Short Message Service 72 NFC Near Field Communication 100 SPV Special Purpose Vehicle National High Speed Railway Corporation 73 NHSRCL 101 SV Stored Value Limited 102 UMTCL Urban Mass Transit Corporation Limited 74 NIC National Informatics Centre 103 UN-HABITAT United Nations Human Settlements Programme 75 NITI Aayog (Hindi for Policy Commission) 104 UP Uttar Pradesh 76 NMMC Navi Mumbai Municipal Corporation 77 NPCI National Payments Corporation of India 105 UPI Unified Payments Interface UTI Infrastructure Technology And Services 78 O&M Operation and Maintenance 106 UTIITSL 79 OD Origin-Destination Limited 80 ONOC One Nation One Card 107 UX User eXperience 81 P&R Park and Ride 108 VMC Vadodara Municipal Corporation 82 PoC Proof of Concept 109 VP Vice President 83 POS Point of Sales 110 WB World Bank 84 PPI Prepaid Payment Instruments 85 PTO Public Transport Operator 111 WRI World Resources Institute 86 PwC PricewaterhouseCoopers Private Limited 112 (MLUD) Mobility Led Urban Development 87 QR Quick Response 113 (IMMTH) Integrated Multi Modal Transit Hub

79 EOF