The city bus service in Berhampur will be operated by a private agency from tomorrow, officials said today
The terms of agreement with the state-owned Odisha State Road Transport Corporation (OSRTC), which is operating the buses at present, will end on the same day.
The decision was taken at a meeting of the Ganjam Urban Transport Services Limited (GUTSL) held here on Friday. The GUTSL, a special purpose vehicle (SPV), was formed for facilitating the transport project.
OSRTC is operating all 26 city buses in Berhampur and its adjoining towns since the operation started on February 26 last year. When no private party came forward to operate the services, the government asked OSRTC to run the buses for one year and then extended the term for another six months.
"During the last one-and-a half years of service, the corporation has incurred a loss of Rs 14 lakh," said divisional manager, OSRTC (Berhampur) A K Mishra.
At least two bidders had shown interest in running the buses. The lowest bidder has been selected, official sources said.
The city buses are operating in Berhampur Municipal Corporation, Hinjili, Chhatrapur and Gopalpur. Six more buses would be added to the fleet very soon, the sources said.
The GUTCL will likely sign an agreement with the new service provider before the latter takes over the service, said an officer.
Besides the civic corporation, other members of the SPV are Chairman of Berhampur Development Authority, Chairpersons of Hinjili, Gopalpur and Chhatrapur NACs.
