Hunt on for private partner to run JNNURM buses in UP

The state is suffering losses of several lakhs of rupees per month,as the revenue is much less than the expenditure incurred in the operation and maintenance of these buses. In Lucknow alone,government has suffered a loss of around Rs 30-35 lakh per month.

The officials,however,maintained that over the last two months,the gap between income and expenditure is closing. The running cost of 215 buses in Lucknow is around Rs 1.16 crore a month.

The state has already incorporated six Special Purpose Vehicle (SPVs),one each for Lucknow,Kanpur,Allahabad,Meerut,Varanasi and one jointly for Agra and Mathura.

Each of these SPVs are being called a ‘Project Company’. The strategic partner will hold 76 per cent of the equity of each project company.

The state transport corporation (UPSRTC),the municipal corporation and the development authority of each city will hold the balance 24 per cent of the equity.

The UPSRTC will procure and transfer the buses to the company for operating the services on routes notified by UP government. It will also have the right to determine and collect fares from the passengers.

The state has invited Expression of Interest (EOI) from private firms and their queries till September 14. A Pre-application Conference with interested firms has been called on September 27 to discuss the queries. Bids have been invited by October 6 and the name of the shortlisted firms may be announced on October 11.

THE ROADMAP

Under the JNNURM,the state has to acquire 1,310 buses for seven cities: Kanpur (300 buses),Lucknow (300),Agra (200),Allahabad (150),Meerut (150),Varanasi (150) and Mathura (60). The cost will be Rs 324 crore,which is to be shared by the Centre and the state government.

According to transport department officials,971 buses were received by July 31. Kanpur has so far received 199 buses,Agra (120),Allahabad (130),Varanasi (128),Meerut (119) and Mathura (60). The buses are covering 73 routes across the cities — 215 buses are covering 26 routes in Lucknow. Global Positioning System has been installed in 145 buses in Lucknow while it is in process in other cities.