The government has created an environment for rapid development to take place in infrastructure. However, managing the involvement of private partners as well as providing firm regulation requires institutions. Local governments at the city level have little experience in managing this process. This case uses the bus rapid transit system project in Ahmedabad as the setting to highlight policy pitfalls in urban infrastucture and more specifically public transport. The project is still in the planning phase and being handled by the municipal corporation, but soon a Special Purpose Vehicle (SPV) will be setup to manage all aspects of the project. The case details the issues in structuring this body such that it brings together all stakeholders, its leadership, powers and role in the project once it is functional. The role of private partners and how they will be incentivised and governed is developed. It also brings out inter modal issues in public transport.