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Chandigarh: Firm managing public bike sharing project put on notice
CSCL CEO Anindita Mitra said the firm had been given three days to reply before further action; meanwhile, city in-charge of SmartBike Mobility, Vikas Bakshi said they had already paid the licence fee
Chandigarh Smart City Limited (CSCL) has issued a show-cause notice to the firm managing city’s public bike sharing project for failing to fulfil terms and conditions of the contract.
CSCL has given three days to the firm, SmartBike Mobility, to reply why its contract should not be cancelled, failing which action will be initiated against it.
Allegations against the firm include failure to pay the annual licence fee worth ₹12 lakh, non-payment of ₹39,000 penalty imposed for delay in payment, not extending its bank guarantee and not submitting its financial status to CSCL.
CSCL CEO Anindita Mitra said the firm had been given three days to reply before further action.
However, city in-charge of SmartBike Mobility, Vikas Bakshi said they had already paid the licence fee and will address the other violations soon as well.
As part of the public bike sharing project, the firm had launched 1,250 bicycles each in Phase 1 in August 2021 and Phase 2 in February 2022. An equal number of bicycles was launched in the third phase in January this year, while the fourth and final phase will be rolled out by July 30 this year, taking the total number of bicycles to 5,000 and the docking stations to 617.
Though the original roll-out of Phases 3 and 4 was slated for April 2022, the firm had sought extension till September 2022, citing mounting losses — primarily caused by vandalism of smart bikes and lack of advertisers. It had again sought an extension in October 2022.
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.
