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A Way to provide Bicycle to Every

household Plus saving the Government
Exchequer Thousands of crore Rupees
Every Year
“THE LAST MILE CONNECTIVITY”

MOTIVATED BY THE CALL OF OUR HON’BLE PRIME MINISTER

NARENDER MODI JI
FOR THE
WEALTH CREATION
AND
FIT INDIA CAMPAIGN

ARUN SEHRAWAT
Vill. BAKKARWALA, DELHI
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Contents

 Page
Introduction                                                             2
Summary                                                                  3  
Case Study                                                                8 
Premise/Problem                                                      8 
Arguments And Counter­Arguments                       12 
Suggestions/Solutions                                            17 
Justification For ₹ 1000 Subsidy                            19
Increase In Total Household Savings                      20
Assumed Cost Of The Scheme                                21 
How To Raise Initial Fund For The Scheme           23
Benefits Of The Scheme                                          24
How To Promote The Use Of Bicycle                      31
Feasibility Assessment Of The Scheme                   37
How To Implement The Pilot Project                      38
Why Is It Necessary To Take Action Today             39
Conclusion                                                              40

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                                              Introduction
(This   is   not   about   Bicycle   vs   Motorcycle,   but,   how   bicycle   is
complementary to motorized vehicles)
 
In India, over a period of time, with the increase in household income,
two-wheelers took over the role played by the bicycle, leading to
negative consequences like wastage of fuel, increase in pollution and
also contributing the unhealthy lifestyle.

Once a two-wheeler enters the household, the use of bicycle starts to


diminish and people start using two-wheelers even for very short
distances like distances between 500 meters to 1 KM radius.
This case study emphasis on the following questions:
 How India is losing between ₹ 8,500 Cr and
₹25,000Cr every year in term of fuel wastage and
how big is the problem?
 What are the effective solutions for the problem?
 How cost benefit ratio is better than 1:3 ?
 How does every rupee spent on bicycle, add more
than three rupees to the GDP?
 How to provide best possible bicycle under ₹2500?
 How can it create lakhs of employment
opportunities?
 How can ‘Bicycle’ help in fight against poverty?
 What are the new ways to promote Bicycle?
 What are the economic, environmental, health and
social benefits?
 How the scheme if properly implemented is
infallible?
 What will be the cost of not taking any action in the
near future?

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SUMMARY

In India, Automobile industry, in last 8 years sold more than 12 Cr


two-wheelers and more than 20 million units in 2017/18 only.

Number   of   households   with   two   wheelers   =   36%   of   total


household = 89.64 million 
(India NHFW survey 2015­16) & (ICE 360 degree survey 2016)

The cost of fuel per litre is taken as ₹ 34.63  
crude oil price = $58; 1$ = 72₹ October 2019
Refining cost of petrol ₹ 8.06

Assuming   one   person   from   a   household   go   to   mother   dairy


which is 750 meters away from his house on motor cycle. Total
distance   travelled   will   be   1.5   km   daily.   Motorcycles   are   very
inefficient in such short distances.

Loss no. 1)  ₹  8497 Cr yearly   (this is the cost of one trip and


every household make two or three such trips daily). So present
loss to Indian government should be between ₹ 8500 Cr
and ₹ 25000 Cr.
This is the cost to Indian government only. Cost to India is far
greater if we calculate environment degradation, health hazards
etc.
Loss   no.   2)  2.45   to   7.5   bn   litres   of   fuel   burnt   into   fumes
needlessly.
*Here cost of taking no action will continue to increase and its
ill effects will continue to compound.

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SUMMARY

FEW Of THE PROPOSALS

1. Design a new Roadster bicycle model: Design a cost­effective
bicycle   model   with   decent   visual   appeal   and   optimum   utility
with the help of IITs, govt agencies and bicycle industry. (eg.
Gear bicycle for hilly regions).
2. Government should exempt that bicycle model from all taxes.
3. Government may further subsidize one bicycle per household
by   giving   back   ₹   1000   to   purchaser   through   JAN   DHAN
ACCOUNT.

 Justification 
Assuming   subsidy   given   to   per   bicycle   is   ₹   1000   and   the
household uses bicycle instead of motorised vehicle than 
Distance * fuel consumption per km * crude oil cost * 365
1.5     *    .05     *     34.63     *   365   =   947.99
1.5     *    .04     *     34.63     *   365   =   758.39
A bicycle can save the government between  ₹758 and  ₹948
in a single year.

4. Awareness   and   sensitization   campaign   should   be   started


assuming at the cost of  ₹ 500 Cr yearly and promote the use of
Bicycle   with   same   intensity   as   that   of   SWACHH   BHARAT
ABHIYAN.

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SUMMARY
Cost Impact Of Implementation (Exaggerated cost)
Assuming   selling   4  crore   bicycles  yearly  in   order  to   cover  all
25cr  households  in  little  more  than  6 years.  Assuming  giving
subsidy of ₹ 1000 
 (4 crore * 1000) + 500 crore = 4500cr yearly.
Even   this   cost   is   quite   less   than   potential   benefits   of   the
program.

No of Bicycle Bicycle Govt. Saving @ Saving


Year Purchase by Purchase Expenditur 20 Kmpl @ 25
Households by e (INR Cr) Kmpl
(with Motorized
Veh)
Household (INR Cr) (INR
s Cr)
(w/o Motorized
Veh)
1st Yr 3 Cr 1 Cr 4500 2844 2275
2nd Yr 3 Cr 1 Cr 4500 5688 4550
2nd Yr 2 Cr 2 Cr 4500 7584 6067
Total - - 13500 16116 12892

Which   is   considerably   less   than   potential   benefits   of   the


program   that   is   forex   saved,   employment   generation,
environmental and health benefits. Benefits outweighs the cost
with great margin.
*  If   this  scheme  is  implemented  than   we   can   provide  the
best possible bicycle at most affordable rates in the whole
world to every Indian household.
* Apart from government appeal, improved quality
Bicycle will also become an incentivising factor for
promoting the use of bicycle.

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SUMMARY

ECONOMIC BENEFITS:
1.   Forex   Reserve   Saving:  It   can   save   exchequer   between   ₹
8500cr to 25000 cr every year.
2.   Doubles   The   Size   Of   Bicycle   Industry:  Bicycle   industry
manufactures nearly 1.65 Cr (89.04 lakh roadster+41.56 lakh
fancy+18.71 lakh kids+others) bicycles yearly. This program if
implemented   properly   have   potential   to   easily   double   the
production of bicycles. 
3.   Lakhs of Employment Opportunity:  Doubling the size of
industry   means   that   it   will   create   lakhs   of   employment
opportunity in the industry.

4. ₹ 14,500 Crore Potential Boost To The GDP: This will give
boost to economic activities not only in bicycle industry but to
other industries too.
         
3 cr (New Bicycles)   *   3500(MRP of bicycle)   =   10,500 cr ₹
(increased economic activity)
Boost to Indian GDP will be 
8,500   cr   (fuel   saving   )   +   10,500   cr   (increased   economic
activity) ­  4500 cr ( subsidy) = 14,500 cr 

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SUMMARY
5. New Industrial Towns:   Two New Industrial towns can be
created on the line of Ludhiana.
6. Increase In The Productivity Of BPL Households:  Bicycle
will become affordable for those who do not own any means of
transport and hence improve the productivity of BPL households
by improving their mobility. Specially School children from BPL
households.
8. We will be able to manufacture the best quality bicycle at
most affordable price in the world. This will also improve
industry's   export   competitiveness   vis­   a­   vis   to   Chinese
bicycles industry.
As Present scenario does not look promising

CONCLUSION:  This   scheme   will   not   only   promote


bicycle and bicycle industry, but also, will be a fight against
poverty,   promote   the   mass   environmental   sensitization,
education,   sustainable   and   healthy   lifestyle,   and   further
may help to the bind the society in the single Thread called
Bicycle. 

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CASE STUDY
A Way to provide Bicycle to Every household Plus saving the
Government   Exchequer   Thousands   of   crore   Rupees   Every
Year
The   thought   of   “Back   to   Vedas”   is   more   relevant   today   than
ever. There is a renewal of thought that “health is wealth”. The
philosophy of economics from organics is engulfing the world.
So, in this context the increased use of Bicycle by the present
generation has to be considered a sort of Renaissance, which
can have a dramatic impact on the socio­economic health of the
individual, society and the nation.
It is time that Bicycle should
be   made   an   essential
commodity   of   a   household
just   like   toilet,   water,
electricity   connection.   A
household   without   bicycle
should   be   considered
deprived.   BPL   should   now
mean   “Bicycle   Providence
Limit”.   This   article   is   not
about  Bicycle vs Motorcycle
as its nearest competitor but
about   how   Bicycle   can
supplement   motorcycles   and
cars and highlighting its role
as   a   means   of   transport   for
the     reason that if we keep
bicycle out of INDIA's growth
story,   then   it   is   the   loss   of
opportunity,   money   and
environment.   It   has   a   small
role but an essential one that
no   other   mode   of   transport
can beat bicycle within 1 km
radius in terms of efficiency, health benefit etc.

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Eg:  people traveling to kiryana shops, barber shop or going to
the gym with in radius of 1 km. (This is the most conservative
figure taken in order not to inflate loss to the govt) Of India.
(Minimum possible loss)
My   observation   about   bicycle   and   motorcycle=   first   time
motorcycle buyer does not buy bicycles afterwards because of
the following reasons:
1. One sees bicycle as legacy of poverty(stigma). So, he even
stops using his old bicycle.
2.   For   him,   bicycle   becomes   expensive   as   it   becomes   an
unnecessary thing and spending  ₹4000 on bicycles not worth.
(why not to purchase ₹ 4000 fuel than silly bicycle).
3. Then he starts using motorcycle even for shortest distances
eg. 500 m to 750 m radius. Motorcycles are very inefficient for
such short trips.
4. Teenagers, in India, considers bicycle as a toy for children
and motorcycle as a prized possession.

Entity taken here is a household not a person (4.9 persons per
household).
Two­wheeler mean efficiency is assumed to be 20 km/l to 25
km/l   (.04   litres   to   0.05   litre   of   fuel   is   consumed   per   km)
considering following factors:

1. Motor vehicles are least efficient during ignition, gear shifting
and accelerating phase.
  
2. In India, motor cycles never go out of use. Older the vehicle,
the same get pushed to hinterlands from urban area. With each

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passing year, as cost of old vehicles reduces so as its efficiency
(more   polluting).   Bharat   Stages   BS­I,   BS­II,   BS­III   and   BS­IV
were launched in 2000, 2005, 2010 and 2017 respectively and
even   BS­I   standard   or   older   vehicles   are   still   running   on   the
roads.

Total number of households in India = 249 million
Number   of   households   with   two   wheelers   =   36%   of   total
household = 89.64 million (ICE 360 degree survey 2016)

Assuming   one   person   from   a   household   go   to   mother   dairy


which is 750 meters away from his house on motor cycle. Total
distance   travelled   will   be   1.5   km   daily.   Motorcycles   are   very
inefficient in such short distances.

Daily distance in KM covered by 89 million households will be
= 89,640,000* 1.5=134,460,000 km

Daily fuel consumption = 134,460,000 * .05 =6,723,000 litres.
Yearly   fuel   consumed   =   6,723,000   *   365   =   2,453,895,000
litres.

The   cost   of   fuel   per   litre   is   taken   as   ₹   34.63   considering


current crude oil price in dollar ($65) and rate of dollar in
Indian rupee ($1=65) in April 2018
Refining cost of petrol ₹ 8.06
Yearly   cost   of   fuel   burnt=   2,453,895,000   *   34.63=
84,97,83,83,850 or approx. ₹ 8497 Cr.
Loss no. 1)  ₹  8497 Cr yearly (this is the cost of one trip and
every household make two or three such trips daily).
Daily one trip costs Indian government ₹ 8497 Cr per year.
Daily two such trips cost Indian government nearly  ₹ 16994 Cr

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per year.
Daily three such trips cost Indian government  ₹  25493 Cr per
year.

So present cost to Indian government should be in-


between ₹ 8500 to ₹ 25000 Cr.
This is the cost to Indian government only. Cost to India is far
greater if we calculate environment degradation, health hazards
etc.
Loss no. 2) 2.45 bn litres of fuel burnt into fumes needlessly.
For two to three trips it will be between 5 bn to 7.5 bn litres per
year
Both   losses   keep   on   increasing   on   yearly   basis   as   number   of
motorised vehicle owners going to increase every year.

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Argument against the Premise:
Argument   1.  Future   is   electric   vehicles.   So,   no   pollution,   no
problem.
 Counterargument:  Issues with electric vehicles:
i) Range and capacity of electric motorcycle is still very less.
ii) Long charging time and depreciation of battery life after each
charging and discharging cycle.
iii) Still expensive enough for common man.
iv) Still 72% electricity generated by coal fired plants in 2018­
19. So, electricity yet to become cleaner.
v)   If   we   made   such   technological   advancement   which   make
travel to such short distances more energy efficient, time saving
at meagre cost, even then we do not want our society to be a
WHEELCHAIR BOUND SOCIETY. That is not sustainable.(wall­
E movie utopia scene)
https://www.youtube.com/watch?v=h1BQPV­iCkU
vi)  Electric   bicycle   will   done   away   with   the   positive   health
benefits of cycling.

vii) Electric vehicles can be the part of the solution but not
the whole solution.
Argument 2. Cycling is not safe on Indian Roads.
Counterargument: Below table shows that cyclists are neither a
major contributor to road accidents, nor the major victims of
road accidents.

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Argument 3. Motorcycle saves time.
 Counterargument :
i) Within   1km   radius   motorcycles   hardly   saves   any   time
and 2 or 3 min saved is not worth the health benefits of
cycling for such short distance.
ii) Relation between blind fast paced life and mental health
is not difficult to surmise.
iii) This is for people and society at large to think that in the
race of saving 2 – 3 mins, Is it worth that we lose our
peace of mind and sometimes purpose of life ?

Argument 4. Indian weather is too hot to go outside in sunny
days.
Counterargument:
i) 70% to 90% Indians are deficient in vitamin D. We need
to   go   outside   in   the   sun.   (vitamin   d   plus   essential
nutrients' supplementation is also needed)
Pan­India  study  in   2019 authored  by  diabetologist PG
Talwalkar,   and   Vaishali   Deshmukh,   MC   Deepak   and
Dinesh Aggarwal.

Argument 5. Why should the customer buy a bicycle or How is
it beneficial to the consumer?
Counterargument:
i) If government bring down the cost of basic model of bicycle

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to ₹2500 or less. Then:
daily   avoidable   distance   *   fuel   consumed   per   KM   *   present
petrol price * 365
1.5*.05*75 * 365 =₹ 2053.12 can be saved yearly by the cyclist
and his bicycle will become free in 14 months (1 year and 2
months).
Daily two such trips can make bicycle free in 7 months.
Daily three such trips can make bicycle free in 4 months.

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TOTAL HOUSEHOLD SAVINGS
It is safe to assume that if we can motivate people to use bicycle
in 1KM radius, every household will be able to save  ₹5000 to
₹7000 for itself.

₹5000 to  ₹7000 (Rupees saved per household) * 89.64 million
households   =   ₹44,820   Cr   to   ₹62,748   Cr   of   Total   Household
Saving
        Roughly Total Household Saving will be between  ₹50,000
Cr to ₹60,000 Cr .   
Today, all this money goes to petroleum industry only, but if
this  scheme  is  implemented  properly,  this  50  to  60 thousand
crores rupees will further help to diversify the Indian economy.
*These figures make more sense in the age of market driven
petrol prices.

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SUGGESTIONS:
1.   Design   a   new   basic   bicycle   model:   Design   a   cost­effective
bicycle   model   with   decent   visual   appeal   and   optimum   utility
with the help of IITs, govt agencies and bicycle industry. (eg.
Gear bicycle for hilly regions).
2. Every bicycle manufacturer should be allowed to manufacture
that specific model.
3. Government should exempt that bicycle model from all taxes.
4. Mass production of the bicycle model may also further bring
down the prices.
5.   Awareness   and   sensitization   campaign   should   be   started
assuming at the cost of  ₹ 500 Cr yearly and promote the use of
Bicycle specially among teenagers.
 (Promote bicycle as a ‘Preventive Health Care’ tool) 
6. Government may further subsidize one bicycle per household
by   giving   back   ₹   1000   to   purchaser   through   JAN   DHAN
ACCOUNT.
(Justification is given on page 18)
7. Government should promote use of bicycle from every public
platform   with   same   intensity   as   that   of   SWACHH   BHARAT
ABHIYAN.
8.  In  every  advertisement  and appeal for SWACHH BHARAT,
add a single line of appeal, asking people to use bicycle.
9.   Bicycle   industry   should   tailor   made   its   advertisements   in
order to focus economy, environment and energy savings aspect
of bicycles. Promote cycling as a Fun Activity.
Glamorize it like kabaddi  “Bicycle is not the helplessness of

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the   poor   but   choice   of   SMART,   young   at   heart   and


responsible people”.
10.   Corporate   sector   can   be   roped   in   by   allowing   Corporate
Social Responsibility (CSR) Fund to be used in promoting and
spreading awareness of cycle commutation, as conserving and
preserving   environment   is   not   only   a   social   and   moral
responsibility but also a constitutional duty. [Article 51­A(g)]
11.   Establish   a   committee   including   all   stakeholders
(Government, industry and experts in the field) to find out
other innovative ways to increase the use of bicycle.
12. We must keep bicycle in consideration while planning and
development of future infrastructure projects. It should be an
essential part of 'New India'. (Smart cities without bicycle is not
a smart idea)
13. Every petrol two­wheeler should be charged Rs 2500 extra (
cost of one bicycle).
Similarly, Give away 2, 3, 4 and so on numbers of bicycles for
every vehicle sold below Rs 5 lakh, below 10 lakh, below 15
lakh   and   so   on   to   those   who   even   can   not   afford   Rs   2500
bicycle.(Poorest of the Poor)
14.   Government   should   promote   bicycle   sharing   schemes   in
densely   populated   cities   and   build   proper   infrastructure   to
promote the use of bicycle. In this regard, there is so much to
learn from countries like Netherland.
15.  Find out why do people in USA, Europe use bicycle more
but   not   in   India?   Countries   like   Japan   and   Israel   are
technologically far more advanced, even they have not forgotten
their   basics   such   as   bicycle   but   why   are   we   trying   to   leave
bicycle behind? Are we really hundreds of years behind them in

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term   of   mentality?   I   do   not   think   so.   But   we   need   to   find


answers. Even country like china which we   want to compete
with   her   manufacturing   prowess   have   not   left   behind   the
bicycle.

JUSTIFICATION FOR ₹ 1000 SUBSIDY
Justification 1
Assuming   subsidy   given   to   per   bicycle   is   ₹   1000   and   a
household uses bicycle instead of motorised vehicle than 
Distance * fuel consumption per km * crude oil cost * 365
1.5     *    .05     *     34.63     *   365   =   947.99
1.5     *    .04     *     34.63     *   365   =   758.39
Above is the amount which a bicycle can save the government of
INDIA in a single year.
A bicycle can remain in working condition for 5 to 6 years.
This way,  Household with Motorised Vehicle (HwMV)i.e.  (1/3
of total households) can save more than enough for the subsidy
for   the   households   without   motorised   vehicle   (Hw/oMV)   i.e.
2/3 of total households.

Justification 2
If government bring down the cost of basic model of bicycle to ₹
2500 or less. Then:

daily   avoidable   distance   *   fuel   consumed   per   KM   *   present


petrol price * 365

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1.5*.05*75 * 365 =₹ 2053.12 can be saved yearly by the cyclist
and his bicycle will become free in 14 months (1 year and 2
months).
Daily two such trips can make bicycle free in 7 months.
Daily three such trips can make bicycle free in 4 months.
TOTAL HOUSEHOLD SAVINGS
It is safe to assume that if we can motivate people to use bicycle
in 1KM radius, every household will be able to save  ₹5000 to
₹7000 for itself.

₹5000 to  ₹7000 (Rupees saved per household) * 89.64 million
households   =   ₹44,820   Cr   to   ₹62,748   Cr   of   Total   Household
Saving
        Roughly Total Household Saving will be between  ₹50,000
Cr to ₹60,000 Cr .   
Today, all this money goes to petroleum industry only, but if
this  scheme  is  implemented  properly,  this  50  to  60 thousand
crores rupees will further help to diversify the Indian economy.

*These figures make more sense in the age of market driven
petrol prices.

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ASSUMED COST OF THE PROGRAM
Bicycle   industry   manufactures   nearly   1.65   Cr   bicycles   yearly.
(89.04 lac roadster+41.56 lac fancy+18.71 lac kids+others) 
Assuming   selling   4  crore   bicycles  yearly  in   order  to   cover  all
25cr  households  in  little  more  than  6 years.  Assuming  giving
subsidy of ₹ 1000 
 (4 crore * 1000) + 500 crore = 4500cr yearly.
Even   this   cost   is   quite   less   than   potential   benefits   of   the
program.

No of Bicycle Bicycle Govt. Savin Saving


Year Purchase Purchase Expendit g @ 20 @ 25
by by ure Kmpl Kmpl
Households Households (INR Cr) (INR (INR
(with Motorized (w/o Motorized Cr) Cr)
Veh) Veh)
1st Yr 3 Cr 1 Cr 4500 2844 2275
2nd Yr 3 Cr 1 Cr 4500 5688 4550
2nd Yr 2 Cr 2 Cr 4500 7584 6067
Total - - 13500 16116 12892

Which   is   considerably   less   than   potential   benefits   of   the


program   that   is   forex   saved,   employment   generation,
environmental and health benefits. Benefits outweighs the cost
with great margin.
*Flow   of   money   is   not   unidirectional/linear.   It   is   circular   in
motion; therefore, a part of the subsidy will come back to the
government   coffers   in   term   of   increase   in   income   tax   of   the
industrialists.

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*  If   this  scheme  is  implemented  than   we   can   provide  the


best possible bicycle at most affordable rates in the whole
world to every Indian household.
* Apart from government appeal, improved quality
Bicycle will also become an incentivising factor for
promoting the use of bicycle.
(Above is not the cost but investment for better returns in 
both present and future)

*In   India,   state   governments,   distribute   more   than   2.5


million bicycles free of cost through different schemes every
year, which should cost more than 600 Cr, that is inefficient
and has every few positive externalities plus few negative
effects.   Smart   and   effective   use   of   government   funds   can
provide more beneficial outcomes to all stake holders.
(Cheap bicycle and Nano eg)
*Distributing   bicycles   without   promoting   use   of   it,   is   like
building   toilets   without   SWACHH   BHARAT   Campaign.
(Hardly anyone will use it)
*It   is   easier   to   promote   the   'Bicycle   for   Every   Household'
and its use as compared to 'Swachh Bharat Abhiyan' as it not
only adds a commodity to every household, a healthy and
cost­effective exercise, but also a fun activity to do.

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How to Raise Initial Funds For The


Scheme
By Increasing the price of every diesel and petrol vehicle by 1%
of its ex­showroom price for three years only.
Sale of two­wheelers in the year 2017­18 = 20,192,672 units
Sale of passenger + commercial vehicles in the year 2017­18 =
41,44,418 units
This way government can generate more than  ₹3,000 Cr every
year, which will be more than enough to kick start the Scheme. 
After   three   years,   scheme   will   be   self­sustainable   and   this
money can be used in providing free bicycles to those who even
can not afford Rs 2500 bicycle.(Poorest of the Poor)
Or, Remove the tax after 3 or 4 years and
Charge 'Rs 50,000 above petrol two­wheeler' with Rs 2500 extra
( cost of one bicycle).
Similarly, Give away, 2, 3, 4 and so on, numbers of bicycles for
every vehicle sold below Rs 5 lakh, 10 lakh, 15 lakh and so on,
to those who even can not afford Rs 2500 bicycle.(Poorest of
the Poor)

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BENEFITS   OF   PROMOTING   USES   OF   BICYCLE   IN   1


KM RADIUS

1. ECONOMIC BENEFITS:
* It can save exchequer between  ₹  8500 cr to 25000 cr every
year.
*Bicycle   industry   manufactures   nearly   1.65   Cr   (89.04   lac
roadster+41.56   lac   fancy+18.71   lac   kids+others)   bicycles
yearly. This program if implemented properly have potential to
easily   double   the   production   of   bicycles.   Means   doubling   the
size of industry and may further lead to double the employment
opportunity in the industry.
*This will give boost to economic activities not only in bicycle
industry but to other industries too.
   3 cr (New Bicycles)  *  3500(MRP of bicycle)  =  ₹10,500cr
(increased economic activity)

Boost to The GDP will be 
8,500   cr   (fuel   saving)   +   10,500   cr   (increased   economic
activity) ­  4500 cr (subsidy) = 14,500 cr 
It means every rupee spent create more than three rupees.
*Potential of tremendous employment generation (doubling of
the present workforce): most of workforce in bicycle industry is
in unorganized sector (SMEs). If bicycle industry grows, so will
the employment opportunities.
*Economic   Empowerment   of   the   Poor:  Bicycle   will   become

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affordable   for   those   who   do   not   own   any   means   of


transport(more than 50% households) and hence improve the
productivity   of   lower   earning   households   by   improving   their
mobility. Specially School children from poor households.
*We will be able to manufacture the best quality bicycle at
most affordable price in the world. This will also improve
industry's   export   competitiveness   vis­   a­   vis   to   Chinese
bicycles industry.
*we can expect growth in export figures of bicycle industry to
increase up to five folds.

2. BENEFITS To HEALTH And HEALTH SECTOR:
Health:

*  TERI report of 2014 “Pedalling Towards A GREENER INDIA”,
 “According to the Annual Health Report (2011) of the Ministry
of Health and Family Welfare, Government of India, nearly half
of   all   the   deaths   in   India   are   primarily   due   to   non­

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communicable diseases, many of which are linked to inactive
and unhealthy lifestyles like  cardiovascular diseases, diabetes,
diseases resulting from obesity, etc. Most of these diseases affect
the person in the productive years and are largely attributed to
unhealthy lifestyles, lack of physical activity, and the resulting
increased rates of obesity among the masses.”
   TERI   Report   2014   “The   World   Health   Organization(WHO)
listed   obesity   and   lack   of   physical   activity   as   two   of   the   five
leading global risks for mortality. WHO estimated that obesity is
responsible   for   the   following   global   disease   burdens:   44%   of
diabetes; 23% of ischaemic heart disease; and 7% to 41% of
certain   cancers.13     Estimates   for   physical   inactivity   burdens
were 27% of diabetes, 30% of ischaemic heart disease, and 21%
to 25% of breast and colon cancers.”

      TERI   Report   2014   “Considering   the   high   cost   and   long


duration of treatment, these  diseases are  not only a financial
burden   to   the   common   man   but   also   a   huge   cost   to   the
economy. The Harvard School of Public Health has, in a study
on economic losses due to noncommunicable diseases (NCDs),
estimated that the economic burden of these ailments for India
will be close to $6.2 trillion for the period 2012–30, a figure
that   is   equivalent   to   nearly   nine   times   the   total   health
expenditure during the previous 19 years of $710 billion.”

*There   are   30   million   obese   Indians,   according   to   medical


journal  The Lancet  in 2016. (By 2025, this number is expected
to pass 70 million.) India has 14.4 million obese children, which
is second only to china which has 15.3 million overweight kids,
says a study published in the New England Journal of Medicine.
(A sedentary lifestyle and junk food are the main causes. Indian
diets are carbohydrate­heavy and oil­rich.)
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*The cost of Obesity to the individual and to the nation is very
high   –the   cost   of   heart   disease,   renal   transplants,   knee
replacements and diabetic treatment is huge. In India, increase
in diabetes is directly proportional to increase in prosperity.

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*According to the Non­Communicable Diseases Country Profiles
released   by   the   WHO,   of   the   estimated   98.16   lakh   deaths   in
India, NCDs led to nearly 6 million, which is 60%  of the total
mortality reported annually in the country.
Cardiovascular   diseases   (CVDs)   are   the   leading   cause   of
mortality, accounting for more than half of all deaths resulting
from NCDs. The burden of CVDs is rising at a significantly high
rate among middle­income and lower­income geographies.

*The   increased   prevalence   of   heart   diseases   in   India   can   be


attributed mainly to lifestyle factors like tobacco use, unhealthy
diet, physical inactivity and psychosocial stress.

*Economic burden of Non­Communicable Diseases

*The ASSOCHAM report on Preventive Health care and its

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impact on Corporate Sector states that “One rupee spent on


prevention saves ₹133 in absenteeism costs and ₹6.62 in
health care costs”.
*Bicycle  can  be  promoted  as   a  tool   for   ‘preventive   health
care’. Eg Yoga, Exercise etc.
*Have   potential   of   bring   down   the   health   expenditure   of
common household by making them healthy.
*This is also needed to be monetized.

3. ENVIRONMENT BENEFITS:
*'SWACHH BHARAT' is not possible without 'SWACHH VAAYU'
*   From   2.5   bn   to   7   bn   litres   of   petrol   could   be   saved   from
burning into fumes.
* Ever material used in the bicycle is recyclable.
*If   the   loss   to   environment   is   monetized   it   may   also   be   in
thousands of crore rupees.

4. SOCIAL BENEFITS:
 If a vehicle owner travel 1 KM daily by bicycle he will be
more aware and respectful of other cyclists and pedestrian
needs and safety.
 Because only the wearer knows where the shoe pinches.
This may even help to make Indian roads safer.
 Helps in proper implementation of Motor Vehicle Act and
enhance the safety of teenagers and public. 

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 It   can   become   first   practical   step   in   educating   and


sensitising the society about the environmental safeguards.
 It   is   one   of   the   best   ways   to   address   ‘Last   Mile
Connectivity Issue’.
 Helps   in   weave   society   through   single   thread   called
'Bicycle'.

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WAYS TO PROMOTE USE OF BICYCLE
“Each pedal is for the Poor”
Cycling is not only for health and environment, but also, is the
way of contributing to the ‘less fortunate part of the population’.
Because every pedal of the bicycle save the resources for the
country   which   may   further   be   spent   for   the   welfare   of   the
needy. 
 

*Carrot and Stick Model
Stick
*   Strict   implementation   of   Motor   Vehicle   Act   and   ensuring
punishment   for   parents   who   give   motorized   vehicle   to   their
children below 18 years of age as they are not only endangering
their children's life but also endangering the life of public on the
road. This may also help in addressing road safety issue in India
and   promote   use   of   bicycles   among   teenagers.   Every   student
from   economically   weaker   section   should   have   a   bicycle   for
productive utilization of their time.
(Police flaw: police most of the time simply challan the minor
'driving the motorised vehicle' of 'driving without the licence'.
So,   we   do   not   have   any   credible   data   of   below   18   MVA
offenders.)
k2

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*From above tables, inference can be deduced that number of
minors, driving the motorised vehicles is substantial.
Carrot
*Give   cyclists   an   online   platform   where   they   can   record,
measure  and  compare  their  daily/weekly/yearly  achievements
in   health   and   contribution   to   India   (In   terms   of   air   quality,
reduction   carbon   foot   print,   revenue   saved   etc)   in   monetary
term.

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A GPS based device can be fitted in a bicycle so that, a cyclist 
can connect that device via a 'special app' with their 
smartphones so they can track their distance covered on bicycle 
and get it recorded on online platform. In this way, distance 
covered by registered cyclists can be recorded. 

Suggestion given below will be better than every measure that 
bicycle industry demands from the government.

Bicycle industry demands: Reduction of taxes and subsidy(500 
cr to 600 cr) and PAN India Bicycle campaign.(500 Cr)
Cost of the above demands will definitely be more than Rs 1000
crore.

But even after spending Rs1000 crore, its hard to estimate how 
much it will motivate the common man to start using bicycle.

But If government decide to distribute Rs 6 lakhs in every 
district of India(723) directly to the cyclist who travel the 
maximum distance and make maximum short distance 
maximum trips in the following fashion, 
eg,
                   1st       prize    Rs 25,000
                   2nd      prize    Rs 20,000
                   3rd      prize    Rs 15,000
                   4th      prize    Rs 10,000
           Next 6       prizes  Rs 5,000 each
           Next 100   prizes  Rs 1,000 each
           Next 200   prizes  Rs 500 each
           Next 400   prizes  Rs 250 each

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           Next 500   prizes  Rs 200 each
           Next 1000  prizes  Rs 100 each
          
Monthly cost will be Rs 600,000 * 723(districts)=43,38,00,000 
(43.38 crore)
Yearly cost will be Rs 43.38 * 12(months)=520.56 crore

Here, number of people receiving prizes every month is 
15,97,830 (15.97 lakhs)
Number of people receiving prizes every year is 1,91,73,960 
(1.91 crore)

Out of these prize winners, lucky winners should be selected 
and given an opportunity to meet their favourite  movie star, 
sportsperson etc.

OPTIONAL: “Winning sum may be used in giving discount on 
electricity/water bills etc (This may help in regularization or 
registration of electric or water meters and may help in reducing
the transmission losses).”
“More the person cycles, fitter he/she gets, and this data can be 
utilized by insurance companies to reduce the insurance 
premium of the cyclist.

The day, this online platform start distributing 520 crore rupees 
to its 1.91crore subscribers every year, its total subscription will 
definitely cross 20 crore and hopefully will be able to recover 
portion of expenditure money through selling advertisements.

If government able to sell 50 paisa advertisement to each 
subscriber, than government will be able to generate 
₹10 cr daily and ₹3650 Cr yearly.
With this money, government can distribute more than 1 crore 
bicycles yearly free of cost to the  household  which can not 
even buy ₹2500 bicycle that too.\

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Such a large subscriber base app can open the gates for many   
opportunities, only limited by the imagination of human mind. 

*GPS can be replaced by "NavIC" (Navigation with Indian


Constellation) enabled devices. It would have following benefits
­­>encourages   manufacturers   to   make   NavIC   compatible
devices so that, citizens can start using NavIC services asap.
­­>facilitates penetration of NavIC services, make such devices
affordable, increase  utility of IRNSS satellites and  encourages
citizens to use NavIC and help users to wean away from GPS.

Example:  *   2018   Budgetary   allocation   to   Ministry   of   Health


and Family Welfare is 52,800 cr
*   Cost   of   National   Health   Protection   Scheme   (NHPS)   as   per
NITI AAYOG is  ₹ 10,000 cr to 12,000 cr yearly. (Other reports
peg this expenditure around ₹ 25,000 cr yearly)
*   The   additional   ₹   11,000   cr   raised   from   increasing   the
education and health cess from 3% to 4% will also be used to
fund NHPS.
* The taxpayer may feel robbed by this arbitrary increase of tax
and the same tax payer can save government more than Rs4000
cr   yearly   by   voluntarily   responding   to   government   campaign
“GiveItUp”.
In the same way, if government appeal the vehicle users, to use
bicycle   for   short   distances   and   each   trip   will   help   the
government to save more than ₹ 8500 cr yearly.

*Incentivising the households which makes maximum number

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of short trips on bicycle.

* Attach sense of using the bicycle to the charity towards poor
or offering to the  God and the day will not be far when the
bicycle will save more than half   of 'Health and Family Welfare
Ministry' budget.

(image of the poor blessing the cyclist)
*It can become one of the ways of mobilizing the true potential
of Indian Demography.

*Organise Bicycle race events like 'Tour de France' but with the
condition of using the same Rs 2500 bicycle model where both
rich and poor can take part and give hefty some of money to the
winners. 

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FEASIBILITY ASSESSMENT
(HwMV = Household with Motorised Vehicle)
Assuming   after   full­fledged   roll   out   of   ‘Bicycle   for   every
household’ campaign, we could motivate following percentage
of households (HwMV) to take three trips, two trips and one
trip respectively.
One trip = 1.5 km
 
7%  (HwMV)  * 3 trips  = 21%
12% (HwMV) * 2 trips = 24%
20% (HwMV) * 1 trips = 20%
 39% (HwMV)                 = 65%
Meaning 39% HwMV have potential to save 65% of 8500 cr.
64% of 8500 Cr is 5440 Cr which is still substantially more than
maximum assumed expenditure of 4500 Cr. 
In the above scenario it was assumed that 61% HwMV choose
not to use bicycle at all, which is near impossible to think. 

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HOW TO IMPLEMENT THE PILOT PROJECT
It is difficult to launch such a large­scale program at one go;
therefore, government should first launch it in phases to study
the impact. 
First Phase
Government   should   distribute   1000   GPS   enabled   bicycle   to
HwMVs   in   any   selected   district.   GPS   should   be   connected   to
special ‘Smartphone App’ where user can monitor the distance
travelled   and   can   also   measure   individual   benefits   and
contribution to the country.
(In terms of air quality, reduction carbon foot print, revenue saved etc) in
monetary term.

PHASE II
After   successful   implementation   of   the   first   phase,   10000
bicycles should be distributed to ten different cities in different
states.The cost of implementation of both Phase I and Phase II
should be under ₹ 10 Cr
PHASE III 

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If the result of phase II is positive then the program should be
implemented in the whole country. 

WHY IS IT NECESSARY TO TAKE ACTION TODAY?
*INDIA is at the cusp of growth trajectory.
India   GDP   in   2017   is   $2.439   trillion(nominal)   and   GDP   per
capita is $1852 (nominal)
Projection of NITI Aayog
India GDP in 2030 will be $7.25 trillion(nominal) and GDP per
capita   will   be   around   $4745(nominal).   (figure   arrived   by
dividing   projected   GDP   in   2030   by   NITI   AAYOG   to   the
population projection in 2030 by UN Population Division)
Means   2.5   times   increase   in   per   capita   income.   With   the
increase   in   purchasing   power,   there   will   be   a   huge   boom   in
motorcycle industry and greater will be the effect of 'avoidable
distance travelled' and bigger will be the lost opportunity.
FOLLOWING TABLE WILL MAKE IT CLEAR
THIS IS THE MINIMUM COST OF TAKING NO ACTION

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*Above is the cost of one trip. For better assessment, loss should
multiply by the factor of 2 or 3. loss should be twice or thrice of
the above figures.   
*Here cost of taking no action will continue to increase and its
ill effects will continue to compound. This is loss to the govt of
India only. Loss to India is many times more.

WHY IS IT DIFFICULT TO IMPLEMENT THIS PROGRAM?
It   is   very   difficult   to   change   the   psyche   of   one   billion   plus
population in INDIA. It is a humongous challenge but as big as
opportunity and that is why, intervention of the government is
required at the highest level. This is the work of true Leaders.
They   dare   to   face   the   challenge   and   take   country   to   path   of
prosperity irrespective of any number of odds. 
Because  leadership  is  not  about  the  next  election,  it  is about
next generation. 

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CONCLUSION:  This   scheme   will   not   only   promote


bicycle and bicycle industry, but also, will be a fight against
poverty,   promote   the   mass   environmental   sensitization,
education,   sustainable   and   healthy   lifestyle,   and   further
may help to the bind the society in the single Thread called
Bicycle.

   In addition to above article. Please also read TERI report of
2014 “Pedalling Towards A GREENER INDIA” supported by All
India   Cycle   Manufacturers'   Association   (AICMA).   File   is
attached   below.   Please,   at   least   go   through   the   Executive
Summary   of   the   report   and   see   the   difference   between   TERI
report and my Report.
THANK YOU and Jai Hind.
Arun Sehrawat
Mobile no. 9899999385
email: arun.sehrawat@yahoo.co.in
http://www.ice360.in/en/projects/homepageservey/one­in­
three­households­in­india­owns­a­two­wheeler­1
http://aicma.org/publications­2/

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