The urban development in most of the Indian cities is the result of laissez-faire development with ribbon extension along the major arterials emerging out of the city core, the Central Business District (CBD). Work trips constitute the majority of the trips in urban areas and these are originating from residential locations to the work places most often called as the CBD areas. Work mean trip length and Passenger-Km are used as proxy to measure energy consumed in the transportation sector. Increase in spatial separation between the residential location and work places result in the long commuting distance and poor accessibility to the peripheral residential locations are encouraging more dependence on private and intermediate public transport. In this paper the problems associated with urban transport and the possible solutions are discussed. Also, the concept of Compact City as an attempt to integrated – land use-transportation is also presented.