In a desperate bid to shore up revenues, the AP State Road Transport Corporation (APSRTC) has decided to focus on increasing its revenues from non-transport operations.
Currently, the state-run corporation realises around Rs. 300 crore through such operations, which form nearly four per cent of its total revenue of Rs. 7,500 crore per annum. Non-transport revenue includes income from advertisements, rents from commercial spaces at bus stations etc.
The plan now is to lease out its lands at 25 locations across the State.
With operational costs on the rise in the last few years, APSRTC has been incurring losses. During 2011-12, accumulated losses stood at a staggering Rs. 585 crore. The current year is likely to see losses of around Rs. 330 crore, thanks to a variety of measures adopted by the management.
It is tough to meet the rising expenditure by depending solely on transport revenues. Leasing out vast tracts of land at depots and other sites could be a good option, explains a senior official.
“This could be a win-win situation. The lands can earn more revenue without any investment. It would also curb encroachments. We expect to earn an additional Rs. 500 crore in non-transport revenue through this project,” the official says.
These lands would be leased out for a 33-year-period on Build-Operate-Transfer (BOT) basis. Private parties would be allowed to construct commercial structures and other facilities at these lands and earn revenue out of them, he says.
To begin with, 25 locations would be leased out. Identification of such locations is underway. Once they are identified, the lease rate would be fixed depending on the area and location. Tenders inviting interested parties would be issued very shortly, he adds.