Private firms to take over KCBT operations by April
The tender was scrutinized and vetted by experts in TNIDB (Tamil Nadu Infrastructure Development Board) and finance department.
Kalaignar Centenary Bus Terminus
CHENNAI: With the operation of buses to southern districts having been shifted to newly inaugurated KCBT in Kilambakkam, the private firm that has been selected for maintaining the sprawling facility will take over the maintenance from April.
Anshul Mishra, member-secretary of Chennai Metropolitan Development Authority (CMDA) said that BVG India Private Limited has been selected to maintain the bus terminus after completing the tender process. The firm will pay a concession fee of Rs. 2.40 Crore every year to CMDA and the concession fee will be increased by 15 per cent every year, he added.
Explaining the reason for approving a single bidder for the maintenance works, Anshul Mishra explained that a total of 4 bidders took part in the pre-bid meeting. "We wanted an escrow account, formation of a special purpose vehicle (SPV) and bank guarantee for one year of maintenance expenses. Due to this, three bidders backed out," he said.
He further explained that guidelines for single tenders issued by Central Vigilance Commission have been followed while processing the tender of BVG India Private Limited as adequate time was given for bidders. The tender was scrutinized and vetted by experts in TNIDB (Tamil Nadu Infrastructure Development Board) and finance department.
When asked about the delay in handing over the maintenance and operation to the firm, he said that the planning authority directed to take over the work in 30 days but the firm requested additional time to form SPV. Following the request, CMDA gave 60-day time while issuing a letter of award. Moreover, as per the agreement, the firm has 75 days to take over the operations completely. "However, they have already started taking over toilets, security and other operations, and doing shadow operation of parking management. By April, the firm will take over completely and deploy 500 employees to run the bus terminus. The firm will maintain it for 15 years," Anshul Mishra said.
It is estimated that the maintenance and operation of the bus terminus will require Rs. 29.30 Crore per year and the estimated revenue through shop rents, parking, bus toll and others is Rs. 30.60 Crore per year.
On the other hand, the planning authority has requested the TNSTC (Tamil Nadu State Transport Corporation) to consider operating buses till 1 am to prevent passengers from stranding. Presently, buses are not being operated after 12 am. As per CMDA estimates, KCBT witnesses a footfall of 20,000 to 30,000 passengers per day on weekdays while 1 lakh passengers use the terminus.
