AMTS plans to introduce 300 private buses in various routes in November. The operator also plans to increase the number of buses to 1,000 in the second phase.
The decision to privatise the service was taken to wipe out the Rs 200-crore cumulative losses incurred by the AMTS over the last four decades. The losses are mounting every year.
Following the government approval, the civic body has already appointed a private consultant to act as a bridge between the state transport department and the AMTS to expedite the privatisation process.
AMC, however, is yet to invite tenders for operating the bus services.
Its earlier tender notice for privatisation of a few loss-making routes evoked no response as not a single private party found any good reason to bid for the routes, which are hardly used by passengers.
AMTS officials are optimistic that the tenders this time would evoke a good response as all the routes are up for privatisation.
With private operators running 300 new buses, the total number of passenger buses on the city roads will go up to 700, including 400 AMTS buses which will continue to run on some routes.
However, a study shows that a city like Ahmedabad with a population of above 50 lakh needs at least 1,200 buses.
A senior official of the transport department said,
