Ludhiana: City bus service to end on February 26, firm yet to pay ₹7.5 crore to MC

The city bus contract, which started on January 25, 2015, was terminated by the MC on January 25, 2024. Following this, the private firm returned 30 buses in the first phase, then another batch a few months later.

The remaining 26 buses of the Ludhiana City Bus Services Limited will stop running on February 26, as per directions issued by the Municipal Corporation (MC). The private firm, Horizon Private Company, which has been managing the bus service, has been instructed to return the remaining buses by the deadline.

The contractor has been returning buses to the MC in phases. As many as 26 buses are with the firm, out of which 11 are running on key routes, including Sahnewal and Kohara Road. (Manish/HT)

The city bus contract, which started on January 25, 2015, was terminated by the MC on January 25, 2024. Following this, the private firm returned 30 buses in the first phase, then another batch a few months later. Out of the 26 remaining buses, 11 are running on key routes, including Sahnewal and Kohara Road, while 15 are lying unused.

The MC had earlier forfeited the firm’s bank guarantee of ₹40 lakh but still has to recover ₹7.5 crore. Officials have suggested that the MC should have taken a minimum guarantee of ₹1.5 crore. Meanwhile, the private company has moved arbitration, alleging that the MC seized the buses without valid reasons.

According to officials, the company didn’t pay monthly quoted charges and advertisement fee after 2019 and also failed to maintain the buses as per the agreement’s requirements despite “repeated reminders”.

The MC clarified that the contract clearly stipulated a nine-year duration. The company was also instructed to clear any outstanding arrears within the same timeframe. In 2015, when the buses were handed over to the operator, rates were set by the MC for various routes in the city.

Currently, 57 buses are already in the MC’s possession and are parked at the Hambran Road depot.

An MC official, seeking anonymity, said discussions have been held with the PRTC to operate these buses on city routes but no final decision has been made yet. The termination of the bus service contract has raised concerns among daily commuters, who are now urging the civic body to come up with an alternative public transport plan at the earliest.

In the implementation of the Prime Minister’s e-Bus Sewa Yojana, electric buses (e-buses) in Ludhiana will be introduced on a public-private partnership (PPP) model. Under this arrangement, the bus operation support will be provided for a period of 10 years, with central assistance offered on a per-km basis.

The official said that at least six more months would be required to initiate the PM e-bus service as Ludhiana would receive 100 mini buses. The initiative is part of the central government’s broader push towards reducing vehicular pollution and promoting clean energy. The introduction of 100 electric buses in the city is expected to not only improve public transport but also significantly reduce the city’s carbon footprint.