G.V.R. Subba Rao

Commissioner will be its chairman

SPV will be set up with an initial capital of 2.03 cr.

RTC opens central cell to design buses for BRTS

VIJAYAWADA: The Government on Thursday issued GO 816 facilitating the formation of Special Purpose Vehicle (SPV) for the proposed Bus Rapid Transit System (BRTS) in the city.

Official sources said the Vijayawada Municipal Corporation (VMC) would have a share of 25 per cent in the SPV, while the Andhra Pradesh State Road Transport Corporation (APSRTC) and the Vijayawada Guntur Tenali Mangalagiri – Urban Development Authority (VGTM-UDA) would have a share of 51 per cent and 24 per cent, respectively.

VMC Commissioner will act as Chairman of the SPV, while APSRTC Executive Director (ED) will be its Managing Director. Krishna district Collector, VGTM-UDA Vice-Chairman, Vijayawada Police Commissioner, Deputy Transport Commissioner (DTC) and APSRTC Regional Manager will function as directors.

The SPV, which has not been named as yet, is likely to be called either ‘Vijayawada Metropolitan Transport Authority’ (VMTA) or ‘Vijayawada Public Transport Services’ (VPTS).

The SPV will be set up with an initial capital of Rs. 2.03 crores. APSRTC will have to shell out Rs. 16 crores on rolling stock, i.e. 40 buses and Rs. 1.2 crores on as many as bus stops. Rs. 4 crores would have to be spent on parking lots. APSRTC has opened a central cell to design the buses required for BRTS projects in Hyderabad, Vijayawada and Visakhaptnam, officials say.


The SPV is expected to get its revenue from advertisement fee, impact fee, differential property tax and public private partnership (PPP) project in ‘build operate and transfer’ method on VMC lands. It is estimated that Rs. 10 crores would be generated through the PPP, while the differential property tax would be about Rs. 3 crores. The advertisement fee and impact fee would fetch Rs. 5 crores and Rs. 3 crore, respectively. The total revenues for the SPV is estimated to be around Rs. 21 crores, of which the VMC’s share would be Rs. 45.2 crores. The officials estimated that total investment would be recovered in three to four years. The SPV will have to be registered formally, so as to formalise all revenue streams.

The decision to form the SPV was taken after a team of officials from the departments of Municipal Administration and Urban Development and Finance returned last week after a visit to some Latin and Central American countries to study the BRTS systems there. On the basis of their findings, the State Cabinet gave its nod to form the SPV.

BRTS phase-1 was approved for the 15.5-km corridor from police control room and going through the railway station, CK Reddy road, Satyanarayanapuram, railway track road, Machavaram down-Ramavarappadu junction, NTR University of Health Sciences, Benz circle, IGMC stadium and state guest house, at an estimated cost of Rs. 152.64 crores.