UP to float global tender for RFQ in August
On May 14 last the UP government had invited "Expression of Interest'' (EOI) from the private investors for plying buses on 465 routes in the state recently de nationalised.
UP has adopted the PPP model for attracting private investment in road transport sector.
"We have received very important feed back from the EOI and as soon as the process of the appointment of the transaction advisors/consultants is completed we will float the RFQ which will be done positively in the month of August'', said Desh Deepak Verma, principal secretary transport department, adding "the Centre has notified 11 traction advisors and we have invited quotation from them and as soon as the advisor is finalised the RFQ will be floated".
Verma said "on the basis of the response of the EOI, UP government has also decided to relax the terms and conditions for the bidders. Against the minimum size of the fleet of 4,000 buses has been reduced to 1,000 buses and to began with the investor will have to press only 250 buses into service''.
Moreover Verma said the operator would be allowed to increase the fleet size to 1,000 buses in next four years.
The 60 per cent of the fleet would be luxury buses while the rest 40 per cent would be the ordinary vehicles.
However both categories of buses will be fitted with the GPRS device.
"The work on the setting up of the UP transport regulatory commission is progressing smoothly and a draft bill for the creation of the regulatory body is expected to be placed before the cabinet sometimes in August'' said Verma.
He added "the role of the regulator will began only after the allotment of the routes after the conclusion of the RFQ so there is no tearing hurry for setting up the regulatory but in any case the regulator will come into being by the end of 2008''.
The five member UPTRC is proposed to be headed by a retired IAS officers of chief secretary rank with experience in transport sector.
The four members of the commission will be an expert on bus operation, station management, Finance and Legal affairs.
"The top priority for the UPTRC will be to ensure that private operators ply their fleet on the rural and the routes which are not commercially attractive. For ensuring this the GPS control room will be set up within the premises of the office of the regulatory commission'', said DD Verma.
The present Bahujan Samaj Party government had announced the new transport policy aimed at developing the transport sector via the PPP route in October 2007.
In January last the state government had issued notification for the de nationalisation of 460 road routes in the state.
Earlier the UP State Road Transport Corporation had the monopoly on plying its fleet of buses on these routes.
The UPSRTC presently operates around 6,700 buses on State and nationalised routes.
With 700 private buses running on contract with the Corporation, the transport undertaking has around 7,400 buses in its fleet.
UP has motor able road network of 1.33 Lakh Km and annual traffic of over 100 crore passengers with annual growth of five percent annual growth.
An official of the transport department said constantly increasing travel demand provides immense potential for the private sector to invest in the transport sector.