Andhra Pradesh - Hyderabad

Poor response to RTC tenders

Hyderabad: The economic meltdown appears to have cast its impact on APSRTC. This is clear from the poor response for tenders to develop Ranigunj I &II, Tirupati and Visakhapatnam bus depots into commercial complex-cum-bus terminals.

The proposed five-floored terminals would have cellar parking with bus arrival and departure points in the ground floor. Bus pass renewal counters and other commuter oriented services on the second floor. The other floors will have hotels, restaurants and other commercial establishments. The tenders were floated last month inviting bidders to develop the four bus depots under Build-Operate-Transfer (BOT) system. The project cost for the four depots was put at nearly Rs. 330 crore and the lease period was valid for 33 years, said APSRTC Executive Director, (Assets Management) P.V.D Jayasankara Prasad.

Seven contractors from the State purchased the ‘Request for Proposal’ applications but till date none of them quoted their prices for developing the depots.

When contacted, most of the bidders said owing to the economic meltdown and poor lending by banks it was becoming difficult for them to take up the projects, informed Mr. Prasad. Such is the recession effect that despite the scope for commercial prosperity, longer lease period and better usage of open spaces at the depots, contractors appear to have shelved their plans.

“We even clarified the contractors that recession would last for limited time and once the market stabilises they could reap profits. But none are convinced,” he said.

A Project Development Committee meeting would be conducted shortly and all the contractors would be invited for a re-consideration in taking up the projects.

If there is a negative reply, then tenders would be called again, he added.

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