NMC clears part of dues after operators threaten to stall buses

Source: The Hitavada      Date: 12 Jan 2018 09:46:39


Staff Reporter,

Nagpur Municipal Corporation (NMC), on Thursday, cleared a part of the dues of Rs 30 crore to be paid to three city bus service (Red Bus) operators and transport manager Delhi Integrated Multi-modal Transit System Limited (DIMTS). The bus operators had threatened NMC to stop plying the buses due to long delay in release of payment on NMC’s part.

Sandeep Jadhav, Chairman of NMC Standing Committee, told reporters that a corporator Manoj Sangole had raised the issue in the committee’s meeting on Thursday. It was alleged that the city bus service was incurring losses and NMC was delaying provision of viability gap funding to the operators. “The operators had submitted a letter to the Municipal Commissioner on Wednesday. Today, NMC has cleared a part of the amount of dues,” Jadhav said. According to officials, NMC cleared payment of around Rs 1.60 crore for the month of October 2017, and that for the months of November and December 2017 would be cleared gradually from next week.

The three Red Bus service operators namely Hansa City Bus Services (Nagpur) Private Limited, Travel Time Car Rental Private Limited, and Shama Sham had submitted a letter to Ashwin Mudgal, Municipal Commissioner, that they would not be able to operate city bus service as release of their dues was getting too delayed. They had threatened that they would stop plying of buses by 4 pm on Thursday.

However, before that deadline, NMC released Rs 1,61,51,042 to the operators and DIMTS. The DIMTS got Rs 36,40,382, followed by Hansa City Bus Services (Nagpur) Private Limited getting Rs 49,74,151/-, Travel Time Car Rental Private Limited getting Rs 28,88,614/-, and Shama Sham got Rs 46,47,895/-.
Interestingly, NMC is finding it difficult to clear dues of city bus service operators despite having made a provision of Rs 100 crore in its budget.
At present, a total of 360 city buses are plying on roads including 340 Red Bus and 20 Green Bus of Scania company.