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'Petrol Bunk' in vacant BMTC spaces to generate revenue
Bengaluru: The battered BMTC has turned to alternative sources of income. In this regard, oil companies have been allowed to open petrol stations in...
Bengaluru: The battered BMTC has turned to alternative sources of income. In this regard, oil companies have been allowed to open petrol stations in their owned premises.
The most used public transport BMTC, has been running at a loss since last one decade. After covid, the amount of loss continues to increase. As the transport revenue is falling significantly, it has reached a state where even the salaries of the officers and staff are given with struggle.
BMTC owns 1020 acres of land in the central part and outskirts of the city. In this, 500 acres of land has been used for bus stand, TTMC, depot, workshops. Another 600 acres of land is lying vacant. Traffic Transit Management Centres (TTMC) buildings are constructed and leased. However, a couple of floors of some TTMCs remain vacant. Now the transport corporation has stepped forward to generate revenue from the vacant spaces.
BMTC, which has assets worth thousands of crores of rupees, has very little income from commercial sources. On the one hand, the transport revenue is also shrinking, on the other hand, the revenue from commercial sources is not increasing. In 2013-14, an annual revenue of Rs 1750 crore was collected from the sale of tickets and passes. Now even half of it is not coming.
The organization is looking at alternative sources of income. At present, only 140-150 crores of income is collected per year from other commercial sources including rent, parking, advertisement. Efforts have been made to increase this amount. For this, it has been decided to increase the commercial income by using vacant spaces and depots.
BMTC is allowing opening of petrol stations in 13 depots and 11 vacant plots owned by it. Tenders have been invited for the construction, maintenance and operation of the banks for a period of 15 years from public and private sector oil companies on a revenue sharing basis.
It has been decided to award the contract to those who pay a higher commission on the revenue generated from the sale of each liter of petrol, diesel and other fuels. Apart from this, the contractor companies have to pay monthly ground rent. 25% of the leased space is being allowed to open a bank ATM, internet center, food court. CNG and charging stations can also be started. However, a fixed rent has to be paid for this. Over 8073 sq. ft. in depots and 16146 sq. ft. in empty spaces have been decided to be leased for petrol stations.
The land rent is increased by 5% every year. In case of delay in payment of rent, commission, interest at 18% per annum has to be paid. A preliminary bid meeting will be held on February 21. March 2 is the last day to submit bids. Technical bid will be opened on March 6, financial bid on March 9. The organization expects a monthly income of Rs 1.55 crore from the land rent itself.
