The Hindu 31.01.2014
Cabinet nod to set up SPV for JNNURM buses
Aim is to ensure that funds do not lapse.
The State has decided to set up a special purpose
vehicle (SPV) to operate and manage the buses procured with 80 per cent
financial assistance from the Jawaharlal Nehru National Urban Renewal
Mission (JNNURM).
Official sources told
The Hindu
that the Cabinet, on Wednesday, cleared the long-pending proposal to
ensure that the funds sanctioned last year to procure 400 buses does not
lapse.
The SPV would be set up on the lines of the
one in Karnataka which operated JNNURM buses. The SPV would be under the
State-owned Kerala State Road Transport Corporation (KSRTC), though the
JNNURM wanted it as a separate entity, sources said.
Setting
up of an SPV was the main condition put forth by the Central
Sanctioning and Monitoring Committee on Urban Infrastructure and
Governance (CSMC) in September to release the first tranche of funds for
the purchase of 400 buses under the JNNURM extended scheme.
Sources
said more clarity was needed on the SPV as the CSMC had asked the State
to notify the ‘planning area’ as the buses were to be operated to major
towns and cities in 12 districts, grouped under five clusters.
It was to be known whether five separate SPVs would be needed for the as many clusters.
It
was not known if the existing JNNURM buses, operated and managed by
KSRTC, would be brought under the SPV. The decision to float an SPV
would be communicated to the CSMC after working out the details with
KSRTC, sources said.
The KSRTC, in a financial crisis
and facing a monthly revenue-expenditure gap of Rs.93 crore, was of the
view that the SPV move would lessen its burden. More clarity was needed
on the Karnataka-model SPV, KSRTC sources said.
The
employees of the transport utility would have to be taken into
confidence if an SPV was to be set up. Five trade unions, including the
Congress-backed Transport Democratic Front and the CITU-affiliated
Kerala State Transport Employees Association, had opposed the move to
create a special business unit within the KSRTC.
At
present, the KSRTC operated 146 JNNURM buses, including 26
air-conditioned ones, in Thiruvananthapuram and 167, of which 48 were
air-conditioned, in Kochi.