MCG bus service to start in seven months, will have a fleet of 500
It could be considered as a Diwali gift for residents who have been persistently complaining about the lack of public transport options in Gurgaon.gurgaon Updated: Oct 13, 2016 00:13 IST
The city will get a bus service run by the Municipal Corporation of Gurgaon (MCG) in the next seven months, sources in the Haryana government said. It could be considered as a Diwali gift for residents who have been persistently complaining about the lack of public transport options in Gurgaon.
The committee of secretaries on infrastructure, which met in Chandigarh on Tuesday, approved the much needed city bus service. The committee also approved the setting up of Greater Gurgaon Urban Transport Services Limited -- a Special Purpose Vehicle (SPV) that will run the bus service.
Within the next seven months, an SPV will be formed, an operator selected, and the necessary infrastructure, including bus shelters and back end services created, sources said.
The proposal will be sent to the Haryana government for approval.
The MCG will be the major share holder in the bus service with 51% shares in the SPV. The Haryana government will hold 19% of shares and the rest will be held by government agencies such as Haryana Industrial Development Board(25%) and HSIIDC (5%), sources said.
The setting up of a city bus service has been a long pending demand of Gurgaon residents who have been dependent on shared autos, cab and shuttle services for their commuting needs.
The Greater Gurgaon Urban Transport Limited will run 500 buses of which 55% would be non-air-conditioned, and the rest will be air-conditioned. The frequency of the service would be 7.5 to 10 minutes, and the corporation has estimated the potential ridership at three lakh per day.
The chairman of the Greater Gurgaon Urban Transport Limited would be the principal secretary of Urban Local Bodies, Haryana. The MCG Commissioner or his nominee would be the CEO.
According to sources, the MCG prefers a gross contract revenue model in which the authority will pay the bus operator an agreed sum on per kilometre basis to undertake the bus operation. The revenue would be collected by the authority. The bus operator will be assured of payment as per contract with no revenue risk lying with the operator.
The MCG will avail of the services of a consultant to execute the project which shall be hired by floating a global tender.
Six months ago, MCG commissioner TL Satyaprakash had asserted that the corporation had enough resources to run the bus service once the government approved the proposal. With the nod coming from Chandigarh, it now depends on the corporation to deliver the services in the next seven months.