UP to invite EOI for transport sector

For attracting private investment in transport sector and developing the sector through the public-private partnership route, the UP government will soon invite Expression of Interest from the private sector. The advertisement for EOI will be issued on April 25 and the government will invite RFPs later.

"We have adopted PPP model for attracting private investment in transport sector with nil financial participation by the state government," said Desh Deepak Verma, principal secretary transport, UP government.

"The Allahabad high court has not stayed the process of EOI and RFP, the court has only restrained the state government from issuing permits to private operators until the writ filed by the state-run UP State Road Transport Corporation (UPSRTC) staff is disposed off."

"Only those operators with a minimum fleet of 1,000 buses with GPS and LED screen facility will be allowed to participate in the bidding for plying of buses on the 460 route," said Verma adding,"Small operators could also take part in the bidding process by forming a co-operative society but the condition of minimum fleet size of 1,000 buses will apply here also." The foreign companies will also be allowed to participate in the bidding for the 460 routes.

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 the state government had issued notification for the de-nationalisation of 460 road routes in the state. Earlier the UPSRTC had the monopoly on plying its fleet of buses on these routes. The UPSRTC presently operates around 6,700 buses on state and national routes. With 700 private buses running on contract with the Corporation, the transport undertaking has around 7,400 buses in its fleet. 

The existing private operators with small fleet and employees of the UPSRTC were opposed to the new policy saying the government intends to create fresh monopoly company in transport sector by handing over the road routes to one big company. 

"Only a big company with a huge kitty of over Rs 500 crore can qualify for investing under the new policy," said Sudhir Premi, secretary of the UP Bus Operators Association, adding, "No existing private bus operator of UP has the capacity to mobilise funds for acquiring a fleet of 1,000 Volvo buses."

In April the state government has held a series of meetings with private bus operators and representatives of close to four dozen companies involved in travel industry to apprise them of the finer details of the new transport policy. The meetings remained inconclusive.

Allaying the apprehensions of the UPSRTC employees, Verma said, "The government has already given categorical assurance that the UPSRTC will neither be wound up nor be privatised and it would continue to operate just as BSNL is thriving along with a host of private telcom companies.

"The government wants the UPSRTC to remain healthy and grow so that a healthy competition could develop in the state and also the UPSRTC would act as a cushion to keep a check on the tariff to be charged by the private operators from commuters," Verma added.