Plan to ply mini buses in 30,000 unserved villages hits roadblock

LUCKNOW: Yogi Adityanath government’s ambitious plan to connect 30,000 unserved villages to their district headquarters through an affordable mini bus service has hit a roadblock due to lack of consensus over funding of the proposed loss-making venture.

Unserved villages are the ones that do not have a public or private bus service.

The two senior bureaucrats, who have been asked to find out a suitable model to implement the scheme, have ended up locking horns over the funding mechanism.

The UP State Road Transport Corporation (UPSRTC) maintains that it will not be possible for it to provide the service unless funded by the government.

For now, the UPSRTC is bracing up to connect 2,100 such villages through its exiting subsidised ‘Lohiya Gramin Bus Sewa’ by the end of the month when the government completes it 100 days.

As a token gesture, the UPSRTC has not demanded any financial assistance from the government.

Providing mini service to 30,000 unserved villages requires Rs 1200 crore only to buy 8,000 mini buses, leave alone meeting the possible viability gap that is feared to be there on account of plying buses on rural routes.

The UPSRTC is said to have told the government that it is beyond its means.

“We will request the government that either it should provide the funds to buy the new mini buses or make up for the losses we will suffer on account of operating subsidized rural buses,” UPSRTC managing director, K Ravindra Naik told HT over phone.

The corporation, according to sources, needs induction of 8,000 mini buses into its fleet or 1875 of them worth Rs 300 crore every year for next four years to be able to serve the remaining 30,000 unconnected villages in the state. “Since the road width of rural roads does not allow operation of the full-size buses that corporation has, it will depend on mini buses that it do not have,” sources pointed out.

The corporation had one more option of engaging private mini buses on contractual basis but private operators are said to have not shown an interest because of possible losses from plying buses on ‘unprofitable’ rural routes.

Sources said that during a meeting called by chief minister Yogi a month ago, a senior bureaucrat suggested a way out.

“He said the corporation could be able to purchase 1875 minis buses worth Rs 300 core every year if the state government exempts it from the liability of paying the annual passenger tax of Rs 250 crore,” said sources.

“But another senior bureaucrat at the meeting was not amused by the idea saying the finance department would never allow tax exemption. This official was not in favour of the UPSRTC being allowed to buy buses and was more inclined to the idea of roping in private operators to serve the purpose, said sources.

The CM, according to sources, left it for these two bureaucrats to discuss the matter and come out with the final workable plan.