Private bus sector roots for PPP

On the lines of KSRTC wet-leasing its luxury bus segment

Published - December 25, 2017 12:42 am IST - THIRUVANANTHAPURAM

The private bus industry is seeking the introduction of Public Private Partnership (PPP) in the segment for it to remain afloat in the State’s transport sector.

Making available high-speed diesel by the government at a subsidised rate of ₹50 a litre for the 14,000-odd private buses and extending the permitted life of buses from the present 15 to 20 years have been suggested to keep the private bus fleet from further dwindling. The industry once had a 40,000 buses. Around three private buses are withdrawn from the roads daily, leaving around 10 persons jobless.

Fare revision

The industry has also sought an increase in the minimum fare to ₹10 and revision of fare by 0.73 paise per km. Students fare should be pegged at 25% of the new fare with a minimum fare of ₹5. In educational institutions where the State government disburses salaries of teachers and non-teaching staff, students’ fare too should be fixed at 50% of the normal fare with the minimum fare at ₹5.

Permission to wind up schedules running on non-remunerative routes and revoking of the decision to deny permits to buses running above 140 km have also been sought.

As the KSRTC has done in wet-leasing of luxury multi-axle buses, the PPP mode can be executed for private buses without any liability to the exchequer. The posting of conductor, issuing of tickets, fare collection and administrative decisions should remain with the government.

How it operates

“The government should deduct administrative expenses from the daily ticket collection and return the rest to the owner of the private bus who has to bear fuel cost and provide the bus with driver,” says Johnson Payyappilly, general secretary, All Kerala Bus Operators Forum. This will avoid unhealthy practices and bring to an end the tendency to speed.

The forum has asked the Ramachandran Committee looking into the bus fare revision to recommend the PPP mode to the government and to examine the issue through a consultancy. The PPP mode is adopted for bus services in Odisha.

High cost

Around ₹29 lakh is needed for launching a bus and the money cannot be recovered in 15 years, the forum has said, while demanding that buses be allowed to rup for up to 20 years.

The increase in the price of high speed diesel, spare parts, and tyres and wage revision have also been cited as hurdles to the ₹4,000-crore private bus industry.

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