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With fast-growing economy and overall development, India’s travel needs are increasing at a rapid pace. This is resulting in explosive growth of vehicle population. However, the road infrastructure is unable to expand at the same pace, leading to demand–supply mismatch, particularly in urban areas. India’s urban population is currently around 30% of its total population. Experience across the world has been that as economies grow, rapid urbanization takes this proportion to over 60% before it begins to stabilize. As such, it is projected that India’s urban population would grow to about 473 million in 2021 and 820 million by 2051 (Ribeiro, 2003) as against only 285 million in 2001 (Census 2001).

To overcome these difficulties & bottlenecks in public transportation, the Department of Electronics and Information Technology (DeitY) under Ministry of Communications & Information Technology, Government of India initiated the Intelligent Transportation System (ITS) project with CDAC, Thiruvananthapuram as a nodal agency and IIT’s & IIMC as collaborating agencies. Intelligent Transportation System encompass a broad range of wireless and wire line communications-based information and electronics technologies. When integrated into the transportation system's infrastructure, and in vehicles themselves, these technologies relieve congestion, improve safety and enhance productivity.