Non-air-conditioned taxis will not hit the roads from July 1 as it was planned earlier. Atlantic Motors, the only operator that had expressed interest in the project, has now termed the project as unviable. The company has said until the Administration increases the fare and chalks out some clarity on routes, the service cannot be introduced.

“The project is not feasible with the fare of Rs 8 per km. Even banks are not ready to lend money for it. With a total cost of Rs 1.5 crore for 50 cabs, we approached various financial institutions, but none agreed to sanction a loan,” said Biresh Singh, the managing director of Atlantic Motors.

The company had submitted a representation to the State Transport Authority (STA) a fortnight ago, requesting for an increase in the tariff. The Administration has till now not responded to this request. It is apparently not keen to increase the fare, which it has already notified.

STA secretary Vandana Disodia said: “The Administration does not plan to on increase the fare, but the operators have been permitted to rent out space for display of advertisements. They should not have any issue with the feasibility of the service.”

The company has also expressed its apprehensions on the routes.

“We have requested for clarity on the routes as there has been no written notification on that from the Administration. We have been informed about the city operations only. In the absence of any concrete counter agreements with the neighbouring states of Haryana and Punjab for the operations, the service will be allowed within the city limits only. This is another blow to our revenues and the feasibility of the project,” said Singh.

... contd.