BRTS Special Purpose Vehicle a rival to RTC?

According to RTC sources, the proposed SPV for the Bus Rapid Transit System for Hyderabad need to be registered under the Companies Act, whereas the RTC was formed under the RTC Act.

Till now there is no clarity on the purview of the SPV, whether it is restricted to the BRTS or it also covers buses sanctioned under JNNURM.

Unless some clarity is obtained, the status of the SPV will be fluid, says an RTC official.

The GHMC, HMDA and APSRTC will be the main stake holders in the SPV and they share the revenue accrued from the BRTS proportionately.

However, the SPV will decide the number of buses to be plied in the BRTS corridors and the fare. If the SPV comes into being, there will be two categories of buses plying in the city.

The execution of 13 km BRTS project has already started in Vijayawada and Visakhapatnam. The SPVs formed for the purpose are likely to be registered under the Companies Act soon. Buses for the BRTS need to be purchased by the SPV separately as the RTC is not inclined to introduce its buses in BRTS corridors.

The SPVs floated in places like Amritsar and Indore were not received well. The BRTS corridors in the two cities were awarded to private players, who themselves purchased the buses. The bus fare suggested by the SPVs in the two cities was also exorbitant. As of now there is no move to allow private operators in the BRTS in the State, says another RTC official.

The RTC has already identified Mehdipatnam - Kukatpally and Mehdipatnam - Gachibowli routes for the BRTS.