Chennai,  The Tamil Nadu government is planning to bring in private players to run the state transport sector under the gross-cost contract (GCC) or the Public-Private Partnership (PPP) model.

This is following the state transport undertakings (STUs) reporting revenue losses to the tune of Rs 6,488 crore in financial year 2021-22. According to a Transport Department policy document, the private players would be responsible for the procurement, operation, and maintenance of buses.

However, the STUs will be responsible for the management of revenue collection and transport network.

While the private operators will be paid per day on the basis of kilometers operated, the STUs will be responsible for providing service to the commuters and will direct the private players operating in the sector.

According to the policy note, the main advantage of this method is to reduce the capital expenditure in purchasing buses as well as on their maintenance.

The note however specified that the STUs should have a minimum fleet of their own vehicles, along with own staff, to be used for any emergency situation.

Talking to IANS, Dr. R. Senthilnathan, a retired fellow with the World Bank in the transport desk, said: "This is a globally accepted model and progressive step in operating the buses, and the Tamil Nadu government taking such a move is to be appreciated. GCC is a globally popular model and is implemented in two-tier cities like Pune and Ahmadabad as also in large metros like Delhi and Mumbai."

He said that for the model to be as successful strict monitoring must be done by the STUs and there have to be service level benchmarks that are to be strictly implemented. He also said heavy penalties must be leveled on the private players if they are not maintaining the high standards that are set for them to operate the services.

Senthilnathan also said that this would help the STUs for better planning of the services while the private operators will bear the responsibility of operation and maintenance, which generally takes most of the former's productive time .

Social activist and transportation researcher P.M. Prabhu, told IANS that this "is a good model but it should not compromise on social objectives of the state government like free rides for women and bus concessions to children".

"If these social indicators are not provided, then the service will turn into a major crisis."