Indian Oil Corp (IOCL) will set up 28 petrol bunks on the open lands belonging to the Telangana Road Transport Corporation (TSRTC).
The central oil PSU and the state-run transport undertaking today signed an MoU to this effect.
The MoU was signed between senior officials of the two companies in the presence of TSRTC Managing Director G V Ramana Rao at Bus Bhavan here, an official release said.
IOCL has allotted the dealership rights to TSRTC and the latter will operate the 28 fuel outlets by appointing personnel on outsourcing basis for which contractors will be appointed through competitive bidding.
The lease period is for 20 years and total construction cost to set up fuel outlets will be borne by IOCL. The entire construction/set up of outlets will be completed in six months period, the release said.
During the lease period, TSRTC will get a rental amount of Rs 1.40 crore per annum for the 28 sites. Further, by the sale of fuel, TSRTC will get a net approximate income of Rs 70,000 per month per site which amounts to Rs 2.35 crore per annum, it said.
TSRTC has a land bank of about 4,000 acres.
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