THIRUVANANTHAPURAM: KSRTC’s commercial complexes are turning lucrative for the cash-strapped fleet operator with a new approach being adopted to utilise the properties located in key locations.
KSRTC is making the turnaround with a dedicated team which is addressing the technical challenges to ensure compliance with regulations, boosting participation in the bidding process, and streamlining lease agreements by eliminating middlemen.
Early results have been promising, with KSRTC successfully leasing three shops at the Kottarakara depot for Rs 60 lakh.
Despite the advantages of strategic locations, KSRTC previously struggled to lease out these spaces. However, Transport Minister K B Ganesh Kumar directed to bring in major changes as part of improving the non-ticket revenue of KSRTC. Earlier he said that the KSRTC would be earning in crores if all the commercial spaces were rented out.
One of the key changes was reducing the participation fee for tenders from Rs 2 lakh to Rs 50,000, a move designed to encourage more bidders. In addition to standardising lease agreements, KSRTC introduced stricter conditions for renewals.
“Rental agreements will only be renewed if tenants have no outstanding dues for rent, water, or electricity charges. KSRTC has also eliminated subletting, which was found to be a major financial setback for the corporation,” said an official.
Apart from a few shops in major centres, KSRTC is yet to lease out around 250 shops in Thodupuzha, Muvattupuzha, Harippad and Pathanamthitta bus stations primarily due to technical issues.