MTC to set up 5 fuel outlets to generate income

CHENNAI: In a bid to generate non-fare box revenues, the cash-strapped Metropolitan Transport Corporation(MTC) would be setting up fuel stations at five termini in the city.

Gandhi Nagar at Adyar, Arumbakkam MMDA, Mogappair East, Perambur and Padianallur are the bus terminuses identified by the MTC to set up fuel stations.

MTC has sought proposals from IOCL, BPCL and HPCL to set up fuel outlets at its five locations, after Transport Minister SS Sivasankar announced in the assembly that fuel outlets would be set up under the dealership model in the places owned by the State Transport Undertakings initially to raise additional revenue.

In the negotiations with the oil companies, BPCL has emerged as the highest bidder for the Arumbakkam - MMDA, Mogappair East and Padianullur terminus, while HPCL got the Adyar and Perambur terminus.

The licence period for the outlets to sell petrol, diesel and lubricants would be 15 years with an escalation of 15 per cent every three years, sources said.

The workforce would be hired through outsourcing and one technical supervisor for each of the five locations would be deployed from MTC.

MTC is estimated to generate monthly earnings of Rs 50 lakh from the five fuel outlets, sources said. The revenue includes the monthly rental and commission for the sale of petrol and diesel.

As per the estimate, the fuel stations at Adyar and Mogappair East would witness an average sales of 431 KL and 350 KL in a month. In the case of the diesel sales, the fuel outlet at Padianallur would have an average sale of 499 KL.

MTC would get a commission of Rs 3330 per KL for petrol and Rs 2220 per KL for diesel. In terms of the rental, the fuel outlet at Adyar would get a rent of Rs 7 lakh per month, followed by Mogappair East (Rs 4 lakh) and Padianallur (Rs 3.20 lakh).