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Pvt operators give govt AC bus project a pass

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Gautam Dheer

Posted: Feb 09, 2008 at 2136 hrs IST

Chandigarh, February 8 The Punjab government, which has on more than one occasion announced its plans on state-run air-conditioned buses for the ordinary passenger, is now struggling hard to rope in private operators for the project. The expression of interest called by the transport department some time back has met with a discouraging response despite the fact that the government had recently cut down the tax component on AC buses considerably to attract private operators to ply AC buses in the state. Government sources said only 40 per cent of the projected requirement of buses for the project has been met so far and the department is looking for ways and means to cover the 60 per cent shortfall.

Officials say of the total 250 AC buses, both ordinary AC and integral AC, for which Punjab Roadways and PRTC had invited applications under its kilometre scheme, the response is for less than 100 buses.

Officials in the department say they are negotiating rates with the highest bidder, following which they would come out with a counter rate per kilometer that will be applicable for every transporter who wants to ply AC buses under the scheme. Both Punjab Roadways and PRTC had invited separate bids from private operators. Punjab Roadways, which invited applications for as many as 125 buses could attract just eight operators for integral AC buses and 36 for ordinary AC buses.

The government had earlier decided that the fare for ordinary AC bus will be just 10 per cent more than ordinary non-AC bus. It was also decided that the fare for the integral AC bus (characterised by more comfort, leg space for passengers) will be 75 per cent more than the ordinary bus.

Officials say the dismal response is largely on account of lack of awareness about the reduced tax. Besides, there’s a clause which provides for a cap on the number of buses a single operator can apply for. “Earlier, the tax component on AC buses was exorbitant. Punjab today has just eight AC buses. The small transporter needs to participate,’’ an official said. Under the kilometre scheme, the department has assured a mileage of 11,000 km per month to every bus to assure fixed returns. “The department saves upon not only the initial capital investments, but also the cost of the driver, maintenance and diesel which will be borne by the private operator,’’ a senior official said.

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