The municipal corporation (MC) has issued a notice to the private firm operating their buses after its contract with Ludhiana City Bus Services Limited expired, directing them to either purchase the 82 buses for a sum of ₹5.42 crore or return them in the same condition that they received them in.
Notably, MC officials had earlier raised concerns over the deteriorating state of a substantial number of buses, justifying the issuance of the notice. The terms of the agreement now require the operator to either acquire the buses by paying the stipulated amount or return them in their original condition.
The additional municipal commissioner-cum-managing director of Ludhiana City Bus Service Limited, Paramdeep Singh Khaira said, “The arbitration decision is pending regarding the arrears of the 82 buses still pending from the operator. The contract has ended, leading to the issuance of a notice. We are awaiting a decision, and then a final resolution will be reached.”
The termination of the contract and subsequent notice emphasise the need for a resolution regarding the fate of the buses and the contractual responsibilities of the private firm. The MC’s move aims to address the issues arising from the condition of the buses and ensure compliance with the terms of the concluded agreement.
Jaskirat Singh, the operation manager of the city bus service, assured, “We will abide by the directions of the municipal commissioner. The recent notice issued by the civic body highlights the amount to be paid or the buses to be returned. We will return the buses in running condition to MC after the final decision with arbitration.”
In 2015, when the buses were handed over to the operator, rates were set by the MC for various routes in the city. Presently, only 35 buses are operational on the Kohara, Sahnewal, and Meharban routes.
The recent check by civic body officials revealed the subpar condition of many buses, leading to the issuance of the notice and a demand for ₹5.42 crore as per the contract.
Meanwhile, tenders for e-buses under the Prime Minister’s E-Bus Sewa Yojana have been floated by the Union government. Civil work for the project is expected to be awarded to the civic body within a few weeks, with officials anticipating the buses to hit the roads by May as part of the project’s progress.
(With inputs from agencies)