Private bus terminal in Delhi delayed further

The capital's wait for the first state-of-the-art privately-run inter-state bus terminal (ISBT) at Dwarka has just got a bit longer, with the Transport Department asking the Delhi Development Authority to spell out how much of the complex can be leased out for commercial activities by the private operator.

The project is to be set up on a build-operate-transfer basis by a private company. Currently, the three existing ISBTs in Delhi are run by the state transport department.

This is a crucial bit given the existing revenue generation of the bus terminals. As of now, the Kashmiri Gate ISBT earns an annual net profit of about Rs 2 crore, the Anand Vihar terminal Rs 1 crore and the Sarai Kale Khan terminal Rs 40 lakh.

For the proposed terminal at Dwarka, the transport department has shortlisted two bids for awarding the contract but the process has been delayed.

According to sources, this is because the department now has had to seek some clarifications regarding the extent to which the concessionaire can use the bus terminal property for commercial purposes. The final model concession agreement will be drafted after the DDA makes its stand clear on the issue. The concession period for running the bus terminal is for 20 years.

Under the concession agreement, the BOT contractor can collect user fees from all the privately and government owned buses that would use the bus terminal. The contractor can also lease out shop floors that would be built in the bus terminal.

The Transport Department will lease its land to the private player for 20 years, as per the concession agreement.