In spite of heavy losses, the AP State Road Transport Corporation is contemplating procuring new buses on lease or buying on the instalment basis from manufacturers to face the stiff competition from private bus operators.
The RTC management is holding negotiations with bus manufacturers in this regard. According to official sources, representatives from about 10 companies from India, China and South Korea participated in the talks held here on Monday. RTC vice-chairman and managing director AK Khan and other high officials represented the corporation at the meeting. The corporation is believed to have requested the bus manufacturing companies to supply new buses on lease or deferred payment basis. The companies’ representatives sought time to consider its proposal and also sought more clarification on its proposal. Accordingly, RTC officials will convene a meeting on Tuesday to explain their proposal comprehensively to them.
The companies included Ashok Leyland (India), Hyundai (South Korea), Mercedes Benz (Germany), Volvo (Sweden), MAN and a Chinese company.
Sources said some companies proposed that they would provide new buses and also take up the maintenance responsibility. For that they asked for some share of the earnings. Some other companies said they would work out on RTC’s proposal and come up with their own proposals in the next ten days.
‘’We have decided to acquire new buses on lease or deferred payment basis from bus manufacturers,’’ an official said. The companies will submit their proposals in the next ten days.