The state government’s attempts to add 4,000 buses to its public transport fleet through Public-Private-Partnership (PPP) have failed to take off due to poor response from investors.

The situation is back to square one — the entire process will have to be restarted again.

In October 2007, the government had announced a new transport policy aimed at developing the transport sector via the PPP model. In January 2008, 460 road routes were denationalised, ending the monopoly of Uttar Pradesh State Road Transport Corporation (UPSRTC). The UPSRTC at present operates around 7,400 buses in the state, including 700 private buses running on contract.

In April 2008, the government decided that only operators who had a minimum fleet of 4,000 buses — with GPS and LED screen facility — could participate in the bidding for plying of buses on the 460 routes. Small operators could participate in the bidding by forming a cooperative society, having a minimum fleet of 4,000 buses. The offer was also open to foreign companies as well. The government floated the Expression of Interest (EOI) on May 14, 2008. On the basis of the response to the EOI, the government decided to relax the terms and conditions for the bidders - the minimum size of the fleet was reduced from 4,000 to 1,000 buses.

Global tenders for Request For Qualification (RFQ) were floated in August and bids opened in October 2008. The few bids that were received were rejected as none met the condition of furnishing a demand draft of Rs 25 lakh with the offer.

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