The other fallout of the delay, say senior officials of the Transport department, is that it will lead to a marked rise in the cost.

“The delay is benefiting only the Blueline bus operators who are not upgrading their services as the decision is pending, but are reaping the benefits of the increased fares,” a transport official said.

According to the official, the file for cluster allotment is still stuck at the desk of Transport Minister Arvinder Singh Lovely and Finance Minister AK Walia.

The corporatisation model was designed by the Delhi Integrated Multimodal Transit System (DIMTS) by dividing 657 bus routes across the city into 17 clusters. Each cluster has both profitable and non-profitable routes. As per the model, the government would control bus fares while the private operator will be given a fixed amount — a rate per kilometre quoted by the operator per bus, and approved by the government.

DTC is supposed to run 60 per cent buses in each cluster.

“Clusters in Ahmedabad, similar to the model conceptualised for Delhi, have been auctioned at a rate of Rs 63 per kilometer in October. We are over a year late, and the cost is going to topple the entire estimation of the project,” said a senior official from the Transport department expecting the bids to now reach at least Rs 57 per kilometer for subsequent clusters that are to be auctioned.

DIMTS was suppose to announce the tender for the Mudrika bus clusters in August, but the tender is still awaiting the transport minister’s and finance minister’s nod.

The government had earlier finalised Janakpuri-based Starbus Limited’s bid of Rs 47.50 per kilometre per bus for the first cluster. According to officials, the mathematics was that the government would have to shell out a subsidy of Rs 27 per km per bus if Starbus’s bid — the lowest, say official— was approved.

Walia had then raised objection claiming that the subsidy, which will result in government coughing up Rs 85 crore annually, was not feasible in the long run.

Blueline buses currently are running on an extended lifeline after the High Court granted them fourth extension since the deadline for their phasing out was surpassed.