Govt has no plan to privatise TN bus routes: Minister

Recently, the MTC floated tenders to appoint consultants to study the feasibility of allowing private players to operate buses in Chennai on a gross cost contract basis.
Image used for representational purpose only. (Photo | EPS)
Image used for representational purpose only. (Photo | EPS)

CHENNAI: Transport Minister SS Sivasankar on Monday said the state government has no plan to privatise transport corporations and assured employees that they would not be impacted by the decision to allow private players to operate buses on a gross cost contract basis, as the bus routes will remain with the government.

“The bus routes will not be handed over to private companies. Private operators will likely be allowed to run buses only on routes that have high patronage. The plan to allow private players under the GCC model was approved during the AIADMK regime,” Sivasankar told press reporters here at the secretariat.

To allay fears of job loss and the cessation of benefits such as free travel for students, women, people with disabilities and transpersons, the minister said the workers’ strength would not be reduced, and free travel for various sections of people will continue.

The minister’s clarification comes amidst protests by workers’ trade unions outside the Metropolitan Transport Corporation (MTC) headquarters on Pallavan Salai, as well as criticism from opposition parties over the MTC’s decision to conduct a study on introducing private buses in the city.

Recently, the MTC floated tenders to appoint consultants to study the feasibility of allowing private players to operate buses in Chennai on a gross cost contract basis. The plan was to introduce 500 private buses in 2023 and another 500 before 2025. Under the proposed model, private companies would own and operate the buses and be paid per km basis by the corporations.

Sivasankar further said private buses have been operating on the GCC model in Kerala and New Delhi for several years, and suggested that left parties should first stop the plan in Kerala before advising the state government. 

“The state government allotted Rs 1,600 crore for the free travel of women commuters last year, and the allocation is expected to increase to Rs 1,900 crore this year,” he added.

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