With the agency managing Chandigarh’s public bike sharing project seeking another extension for the launch of Phases 3 and 4, the Chandigarh Smart City Limited (CSCL) will be seeking legal opinion to take a call on it.
The decision was taken during a meeting of the CSCL board of directors on Monday.
After launching 1,250 bicycles each in Phase 1 in August 2021 and Phase 2 in February 2022, the firm, SmartBike Mobility, plans to launch an equal number in the next two phases, taking the total to 5,000. The number of docking stations, which currently stands at 310, will also be pushed up to 617.
Though the original roll-out of Phases 3 and 4 was slated in April 2022, the agency had sought extension till September 2022 due to mounting losses, primarily caused by vandalism of smart bikes and lack of advertisers. But in October, it sought more time to start Phase 3 in December 2022 and Phase 4 in April 2023.
“During the meeting, it was decided that the company will submit its financial status under the special purpose vehicle. Then, CSCL will take legal opinion on whether there will be any financial benefit to the company if another extension is allowed. We are hopeful of taking the final decision in the next board meeting, which is scheduled next month,” said Anindita Mitra, CEO of CSCL.
{{/usCountry}}“During the meeting, it was decided that the company will submit its financial status under the special purpose vehicle. Then, CSCL will take legal opinion on whether there will be any financial benefit to the company if another extension is allowed. We are hopeful of taking the final decision in the next board meeting, which is scheduled next month,” said Anindita Mitra, CEO of CSCL.
{{/usCountry}}60 of 310 docking stations relocated
Earlier, concerned over paucity of advertisers, the agency had requested relocation of 60 of the existing 310 docking stations, which was permitted by authorities, as the contract allows for a change in location of 10% of the total docking stations (617). As the project is heavily dependent on revenue generated from renting out advertisement spaces at the docking stations, the firm had sought change of location.
1,200 rides per day
In the past year, more than one lakh users have downloaded the official mobile app to book the bicycles. On average, around 1,200 users ride the bicycles per day, while the number goes up to 1,600 on public holidays.
The bicycles can be rented for ₹10 for half an hour and members can rent it for ₹5. One can register as a member for a year by making a one-time payment of ₹500.