The Kerala State Road Transport Corporation (KSRTC), which is executing the purchase and maintenance of the city bus service proposed under the Jawaharlal Nehru National Urban Renewable Mission (JNNURM), has already given the purchase order for 15 low-floor A/C buses for Kochi. Each bus will cost Rs 78.20 lakh.

“The buses are now ready for delivery.

But before that a special purpose vehicle (SPV- a subsidiary company) should be formed,” said a KSRTC official. The SPV is the cause of the rift. The Corporation officials say that since funds are being routed through them, they would like to have a say in the formation of the SPV. But KSRTC officials say that as per the RTC Act, it is the KSRTC and its sub-company that will make the final decision. “The formation of an SPV is mandatory for the implementation of the project. The buses can only be registered after the SPV gets recognition from the state. The SPV will consist of representatives of the State Government and an official from the JNNURM.

The KSRTC will hold a major share in the company,” he added.

“Though we have already submitted our proposal for the SPV, the Corporation is yet to finalise its stand,” the official added.

Unlike the usual practice, this time the KSRTC has given the contract for procuring fully-built buses. “That means low floor and semi low floor buses will reach here with fully built body and interiors.

As soon as they reach here they need to be registered under the SPV. Only then can they be pressed into service,” the official added. The official said that the routes finalised by KSRTC for low floor and semi low floor buses in city have been sent to the Corporation authorities for approval.

Deputy Mayor C K Manisankar said that so far KSRTC officials have not communicated with the Corporation authorities about the SPV formation.

“We are not aware of the route map suggested by the KSRTC. The Corporation council is the sole body to decide the routes. Why should we blindly accept the route map suggested by the KSRTC? We are waiting for instructions from the Ministry level. Once we receive the proposal for the SPV and the suggested route map, we will discuss the matter in the council meet and finalise the routes,” Manisankar said.