BMTC to tie-up with private operators

DECCAN CHRONICLE | SHRINIVASA M.
Published Aug 2, 2015, 12:50 pm IST
Updated Jan 10, 2016, 8:38 am IST
BMTC will operate buses provided by private operators
BMTC is planning to move towards privatisation to cut its operational losses
 BMTC is planning to move towards privatisation to cut its operational losses

Bengaluru: Bengaluru Metropolitan Transport Corporation (BMTC) is planning to move towards privatisation to cut its operational losses. Sources in the state government said that BMTC is planning to stop procurement of new buses, and instead is thinking of hiring buses from private operators on revenue-sharing basis.

As per the proposal, BMTC will operate buses provided by private firms/operators. Instead of fixed rent or lease amount, BMTC will share the revenue on percentage basis.

“The proposal is yet to be finalised, and the state government is expected to forward it. The BMTC management is wary of this proposal, as it expects the staff to raise a red flag over any such a move,” said sources close to the development. They said that BMTC employees have got wind of the proposal and expressed their concerns.

“BMTC is now spending heavily on employees, including their benefit schemes, besides freebies like passes. This has made the corporation financially vulnerable. To cut its burden and investment requirements on purchase of new buses the BMTC has proposed to start the new scheme,” said an officer.

“As procurement and maintenance of buses will be taken care of under the new proposal, the financial burden on the corporation will reduce,” he said. But sources in BMTC said there is no such proposal before the transport corporation. Employees said that they will not allow any effort towards privatisation of the corporation.

An employee told Deccan Chronicle that the corporation is making profits as fuel prices have fallen. “There is no need to go for privatisation through the backdoor. Our unions have already issued their statements against the proposal,” he said.

Location: Karnataka




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