CHENNAI: With the Kilambakkam bus terminus likely to open next year, the Chennai Metropolitan Development Authority (CMDA) is looking at various revenue models, including commercial development of 6.40 acres of land adjacent to the terminus with an investment of Rs 986 crore. It also plans to hire a single concessionaire to maintain the bus terminus.
Sources told TNIE the idea is that the bus terminus should be maintained like an airport. Earlier, CMDA hired property development consultant Jones Lang LaSalle (JLL) to conduct a feasibility study and suggest a revenue model for operation and maintenance of the terminus on a net zero energy basis by tapping solar energy.
It was learnt that the feasibility report prepared by JLL, which was discussed during the CMDA authority meeting, suggested two revenue models. One was revenue collection from commercial spaces such as shops, restaurants, parking of vehicles, advertisements, entry fee for state and omni buses, and entry fee for a proposed Climate Interpretation Park.
The second was to meet the operation and maintenance costs from the revenue generated from the commercial development of 6.40 acres adjacent to the terminus with an investment by the concessionaire worth Rs 986 crore with a concession period of 45 years.
Under the first model, there is an annual deficit in terms of operation and maintenance to the tune of between Rs 6.112 crore and Rs 12.02 crore every year. This amount has to be paid to the single concessionaire every year by CMDA. Under the second revenue model, the operation and maintenance costs will be fully met by the revenue generated from commercial developments on the 6.40 acres sources said, adding that the minister in charge has approved the proposal.
The proposal for single concessionaire comes in the wake of CMDA — which has taken Chennai Moffusil Bus Terminus (CMBT) on lease for 10 years on a condition that it will remit Rs 5 crore annually to the government — failing to remit the required amount to the government since 2008-09.