PPP route for 650 buses ruffles city NGO feathers

The decisions were taken at a meeting held at the Divisional Commissionerate on Monday,which was attended by District Guardian Minister Ajit Pawar and civic officials.

“We have appointed a firm to finalise tender details,which should be out in a month,” said Dilip Band,divisional commissioner. “We expect international players in the bidding.”

The move has been opposed by several city NGOs. “Even now,PMPML runs hired buses. Their efficiency is low; the only monitoring mechanism is the number of kilometres logged,which is often tampered with. The PMPML’s role is to provide service to maximum customers,which might not be the motive of private players,” said Jugal Rathi,convener of Sajag Nagrik Manch.

PMPML managing director Nitin Khade could not be reached for his view.

Broadly,the tender will offer two options. The PMPML can opt either for ownership of the buses or for transfer ownership in the names of private parties. In both options,the buses will be run and maintained by the private parties,which will pay a certain royalty to the PMPML.

The amount put in by the government will be the same in both cases as will be the duration of the contract for both options,9 years. However,in the second case where private players can opt for ownership of the 650 buses,PMPML expects to earn more royalty because of income tax benefits

At present,the government has estimated prices at Rs 22 lakh (non-AC) and Rs 40 lakh (AC) and is contributing 50 per cent of the budget. Band said this is far less than the actual cost,Rs 70 lakh for AC Volvos and Rs 40 lakh for non-AC,semi-floor buses.

Under JNNURM,the state has to contribute another 20 per cent and both PMC and PCMC the remaining 30 per cent of the budget.

“In the PPP model,neither corporation will spend a single paise. If PMPML owns the buses,it will increase establishment costs as it will have to take care to run and maintain the buses,” Band said.

The PMPML makes a profit of Rs 3 per km on every km run by hired buses.