The standing committee took the decision after detailed deliberations
over the issue. The matter was brought to the committee last month, but
an embargo over the premium paid by the operator, Vitcos Pvt Ltd, as
well as debate over whether the same operator should be given an
extension without tendering had led to the delay in arriving at a
decision.

The proposal before the standing committee had stated
that the service provider Vitcos Pvt Ltd should be allowed to continue
with the service with a premium of Rs 19.61 lakh per annum against the
Rs 18.55 lakh premium it paid since May 2008 when it began operations.
At the other end, the service provider had recently stated that it was
finding the operations a financial burden and the premium should be done
away with. It had also raised a series of demands like providing it
with a space for a depot, allowing it to operate diesel buses etc.

Some functionaries in the VMC also raised issues regarding the city bus service
particularly the fact that it was not operating on all the routes that
it had promised to ply buses on. Other issues were also raised regarding
the operations of the service. The VMC opposition too had objected to
the bus operator being given an extension without tendering. On Friday,
the standing committee sent back the proposal for extension and sought
fresh bids.