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This is an archive article published on June 29, 2009

Non-AC cabs may remain non-starters

Non-air-conditioned taxis will not hit the roads from July 1 as it was planned earlier.

Non-air-conditioned taxis will not hit the roads from July 1 as it was planned earlier. Atlantic Motors,the only operator that had expressed interest in the project,has now termed the project as unviable. The company has said until the Administration increases the fare and chalks out some clarity on routes,the service cannot be introduced.

“The project is not feasible with the fare of Rs 8 per km. Even banks are not ready to lend money for it. With a total cost of Rs 1.5 crore for 50 cabs,we approached various financial institutions,but none agreed to sanction a loan,” said Biresh Singh,the managing director of Atlantic Motors.

The company had submitted a representation to the State Transport Authority (STA) a fortnight ago,requesting for an increase in the tariff. The Administration has till now not responded to this request. It is apparently not keen to increase the fare,which it has already notified.

STA secretary Vandana Disodia said: “The Administration does not plan to on increase the fare,but the operators have been permitted to rent out space for display of advertisements. They should not have any issue with the feasibility of the service.”

The company has also expressed its apprehensions on the routes.

“We have requested for clarity on the routes as there has been no written notification on that from the Administration. We have been informed about the city operations only. In the absence of any concrete counter agreements with the neighbouring states of Haryana and Punjab for the operations,the service will be allowed within the city limits only. This is another blow to our revenues and the feasibility of the project,” said Singh.

A similar representation regarding revision of fare and clarification of the routes was earlier submitted by three other shortlisted companies. In all,four companies were short-listed by the STA,of which three — Speed Motors,Harbeer Automobiles and Harbeer Car Point — are owned by the same owner; Harbeer Singh. Atlantic Motors was the only shortlisted company,which has deposited the security amount of Rs 1 lakh to the STA.

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Track record not encouraging
The project of non-AC cabs could not take off for almost two years due to the failure on part of the Administration to invite applications from the interested companies. Due to this,the tenders were invited twice and still only four companies were shortlisted,of which three had the same owner.

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