Bengaluru: With an aim to cut on the operational losses the Bengaluru Metropolitan Transport Corporation (BMTC) is planning to move towards privatization.
Reportedly the state government said that the BMTC is planning to stop procurement of new buses, and instead is thinking of hiring buses from private operators on revenue-sharing basis.
As per the proposal, BMTC will operate buses provided by private firms/operators. Instead of fixed rent or lease amount, BMTC will share the revenue on percentage basis. The proposal is yet to be finalized, and the state government is expected to forward it. The BMTC management is wary of this proposal, as it expects the staff to raise a red flag over any such a move, it is said.
BMTC is now spending heavily on employees, including their benefit schemes, besides freebies which has made the corporation financially vulnerable. To cut its burden and investment requirements on purchase of new buses the BMTC has proposed to start the new scheme, said an officer.
As procurement and maintenance of buses will be taken care of under the new proposal, the financial burden on the corporation will reduce, he added.