VIJAYAWADA: The Andhra Pradesh State Road Transport Corporation (APSRTC) has proposed the development of six major bus stations across the State under the Public-Private Partnership (PPP) model with an aim to modernise passenger infrastructure and generate additional non-fare revenue.
However, the move has triggered a strong opposition from RTC employee unions, who fear backdoor privatisation of public assets for three to five decades will leave the corporation crumbled, limiting the exploration of revenue.
According to sources, the proposed projects include the redevelopment of integrated bus terminals at Autonagar in Vijayawada, Rajvihar in Kurnool, Guntur and Kadapa, besides the construction of a modern intermodal station in Tirupati, and a bus station-cum-commercial complex in Chittoor. The total estimated investment of six projects runs into Rs 958 crore.
Among the six projects, the redevelopment of Autonagar Integrated Bus Terminal in Vijayawada at an estimated cost of Rs 154 crore is stated to be “ready to bid.” The Tirupati Intermodal Station, pegged at Rs 495 crore, has completed its Detailed Project Report (DPR). The remaining four projects are still at the DPR preparation stage.
The six projects are planned under different PPP formats such as Design-Finance-Build-Operate-Transfer (DF-BOT), BOT with Viability Gap Funding (BOT-VGF), and BOT with revenue-sharing mechanisms.
On the other hand, RTC union leaders have raised serious concern over the move, alleging that the PPP model would ultimately benefit private companies at the cost of the corporation.
Unions call for direct funding to corp for remodelling of RTC bus stations
Union leaders argue that APSRTC has historically developed and modernised its infrastructure using its own funds and internal resources.
Citing the 2015 -20216 period, union leaders stated that the former RTC Vice-Chairman and Managing Director N Sambasiva Rao undertook extensive renovation of major bus stations across the State without private participation.
According to unions, those upgrades proved that APSRTC is capable of developing and maintaining its assets independently. The unions have warned that handing over commercially valuable bus station land and complexes to private entities could weaken APSRTC’s long-term financial position and reduce its control over core infrastructure.
They demanded that the government reconsider the PPP approach, and instead allocate funds directly to the corporation for redevelopment. “After renovation of Vijayawada bus stand, commercial revenue increased which is directly going to the corporation. With the PPP model, the money will go to private companies, and a meagre share will be paid to APSRTC,” they said.
Officials maintain that the PPP model is aimed at mobilising investment, improving passenger amenities, and integrating commercial facilities without burdening the State exchequer.
APSRTC officials are in touch with the KPMG for identifying eligible private contract companies, structuring the PPP framework, and facilitating the bidding and contract awarding process for the proposed projects, as a transaction and project management consultant, it is learnt.