Corporatization of city’s public bus receives a set-back
India Blooms News Service
New Delhi, Mar 11 (IBNS) Delhi Government’s plan to corporatization of city’s public bus service received a set-back after the transport department was unable to sign a Memorandum of Understanding (MoU) with the lowest bidder, Star Bus Pvt Ltd, because of problems in documentation.
According to sources, the operator, M/s Star Bus Services Pvt Ltd had first fixed the date for February 25, but they postponed it to March 3.
And failed to turn up Wednesday saying that they could not get the bank guarantee of Rs.10 crore for the contract due to bank issues.
The operator said that they are having problems with bank guarantee since they were said by SBI that an approval from the regional head is needed.
“We are going to approach the department for the bank guarantee at the earliest,” said Nitin Garg, MD of Star Bus Services Pvt Ltd.
This is a big set-back for the government after High Court barred Delhi government from phasing out any more Bluelines from the city till the requirement of 11,000 buses is met. The signing of the deal Wednesday was the government’s only hope.
Now the transport department is also going to reportedly stop the move to phase out more Bluelines till Cluster I becomes operational. The department is now giving permits to even those buses, whose permits were cancelled from south Delhi. They are now being given alternative routes.
Only those Blueline buses whose permits are now lapsing after completion of the 10-year cannot ply any more.
The department has also decided to phase out about 264 Blueline buses from routes in Noida and south Delhi.
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