Jaipur: The government’s acceptance to the proposal of Jaipur City Transport Corporation Limited (JCTSL) to procure 100 buses by March 31 would not have any immediate impact on state revenue, claimed a section of officials from the corporation.
However, the government only had to sanction the per km charges under the Gross Cost Contract (GCC) mode which government pays to the agency from which the corporation hires the buses.
“JCTSL is not essentially buying any bus. It would procure buses on GCC mode and would pay the operator a fixed rent on per kilometre basis. It means, the government need not have to bear any immediate financial burden to run 100 new buses in the city,” said a senior JCTSL official who did not want to be quoted.
On Wednesday TOI had reported that owing to delay in accepting or rejecting the proposal from the government, JCTSL had to run services with only two-third buses and the corporation had decided to withdraw eight routes from April 1. This would affect more than 50,000 commuters.
Officials said, JCTSL had decided to outsource Convergence Energy Services Limited (CESL) – an ancillary of the Union Ministry of Power – to bid for the procurement of these city buses. This is to ensure that the per km charges under the Gross Cost Contract mode remains less than if JCTSL on its own float the tender. However, for this JCTSL had to pay a one-time charge to participate in the bid.
“Even government need not have to arrange this one-time charge as it is available with the corporation,” another official added.
In all probability if CESL is outsourced to bid for the procurement – like many states are doing it – the government needs to pay around Rs 54 per km on the Gross Cost Contract mode to the operator from whom the buses would be procured. At present, government procure buses from two agencies paying Rs 34-40 per km.
“However, all these buses are old ones and run-on diesel and most of these buses are non air conditioned. However, JCTSL would procure all air-conditioned electric run environment friendly buses. So this little difference is quite obvious,” said another JCTSL official.
However, the government only had to sanction the per km charges under the Gross Cost Contract (GCC) mode which government pays to the agency from which the corporation hires the buses.
“JCTSL is not essentially buying any bus. It would procure buses on GCC mode and would pay the operator a fixed rent on per kilometre basis. It means, the government need not have to bear any immediate financial burden to run 100 new buses in the city,” said a senior JCTSL official who did not want to be quoted.
On Wednesday TOI had reported that owing to delay in accepting or rejecting the proposal from the government, JCTSL had to run services with only two-third buses and the corporation had decided to withdraw eight routes from April 1. This would affect more than 50,000 commuters.
Officials said, JCTSL had decided to outsource Convergence Energy Services Limited (CESL) – an ancillary of the Union Ministry of Power – to bid for the procurement of these city buses. This is to ensure that the per km charges under the Gross Cost Contract mode remains less than if JCTSL on its own float the tender. However, for this JCTSL had to pay a one-time charge to participate in the bid.
“Even government need not have to arrange this one-time charge as it is available with the corporation,” another official added.
In all probability if CESL is outsourced to bid for the procurement – like many states are doing it – the government needs to pay around Rs 54 per km on the Gross Cost Contract mode to the operator from whom the buses would be procured. At present, government procure buses from two agencies paying Rs 34-40 per km.
“However, all these buses are old ones and run-on diesel and most of these buses are non air conditioned. However, JCTSL would procure all air-conditioned electric run environment friendly buses. So this little difference is quite obvious,” said another JCTSL official.
