
CHENNAI: Chennai commuters will soon have air-conditioned Volvo and Mercedes-Benz buses, with premium facilities and fares, operated by private companies.
The transport department has accorded approval to a proposal by the Metropolitan Transport Corporation (MTC) in this regard to hire private buses through a revenue-sharing model and permit their operation on select routes where MTC is operating its buses.
These premium buses will offer free Wi-Fi, have surveillance cameras, spacious seating, ample legroom, ergonomic designs for enhanced comfort, temperature control systems, reduced noise levels, and panoramic windows. They will be introduced on the routes that have higher demand in the city.
The private operators will be allowed to utilise MTC depots, bus stops, termini, parking lots, and other infrastructure for a fee. The operators will also share a fraction of their revenue with the MTC. The number of buses and routes is yet to be determined.
The buses are targeted at commuters willing to pay higher fares, as the operators will charge fares — details of which are yet to be finalised — higher than the air-conditioned buses operated by the MTC.
The accordance of approval follows an announcement by Transport Minister S S Sivasankar in the Assembly in June 2024. While the minister said a feasibility study would be conducted regarding the operation of premium services, he did not specifically indicate that the services would be operated by private players. The proposal, according to the government, is aimed at reducing the growing reliance on private vehicles, especially cars, for commuting.
Mumbai’s premium bus fleet includes diesel, CNG and electric buses. An MTC official said, “As for Chennai, the fuel type has not been decided yet. The project has received government approval, and the implementation modalities are currently being finalised.”
The transport department has examined models like the direct licensing system implemented in New Delhi and the private bus hiring model used in Mumbai. Finally, the government opted to hire a service provider model, under which buses will feature the logos of both the private operator and the MTC. A revenue-sharing agreement will be signed with the operators, as outlined in a G.O. issued by department secretary K Phanindra Reddy. Currently, the MTC operates 3,200 buses across 629 routes, serving over 32 lakh commuters daily.