With revenue sources drying up quickly amid the pandemic, the transport department is looking at various options, including leasing out land for construction of commercial complexes. Identified at 190 locations across the state, it will utilise 640 acres for the purpose.
For long, Bangalore Metropolitan Transport Corporation (BMTC), Karnataka State Road Transport Corporation (KSRTC), North-East Karnataka Road Transport Corporation (NEKRTC) and North-West Karnataka Road Transport Corporation (NWKRTC) have been unable to generate expected revenue. Post the pandemic outbreak, the situation worsened with minimal use of public transport.
“After analysing the possible mechanisms at our disposal, we decided to go in for public-private partnership (PPP) for developing these lands. The ownership will be with the government while the buildings will be built by private players,” transport department principal secretary Anjum Parvez explained.
Having used prime properties for largely underutilised traffic and transit management centres, the government is now focussing only on commercial complexes beside its existing bus terminals.
Officials said the properties will be given for a 30-year lease to the construction company, after which the government will take over. However, the companies will have to bid for a single tender that will see the government selecting only those which are ready to pay the highest value for leasing the land and constructing the complex. The department will approach the infrastructure development corporation of Karnataka (iDeCK) for a detailed study and construction valuation. At present, the finance department is vetting the PPP model proposal.
With the 630-acre land valuation running anywhere between Rs 800 crore and Rs 1,000 crore, the government is expecting a substantial revenue share.
Twenty of these locations are in Bengaluru, including Kempegowda bus stand in Majestic, and Shantinagar, Peenya and Magadi bus stations.
While most of these plots have structures, including dilapidated bus stations which need to be demolished, 35 to 40 locations are vacant.
