KARACHI, June 26: The Sindh Cabinet has approved an urban transport scheme for induction of new large buses in Karachi with a view to gradually reducing buses, coaches and old model buses from the main routes of the city.
Keeping in view the significance of public transport as an important ingredient of socio-economic development, the Sindh cabinet in a recent meeting, presided over by governor Mohammedmian Soomro, approved a scheme which guarantees a number of incentives to transporters who would bring in new buses in Karachi which will help reduce traffic load and pollution.
However, only companies, cooperatives and consortium can participate in the scheme.
A committee was formed on Feb 2 by the governor, comprising secretary of transport Raja Mohammed Abbas, EDO (TCD) City Government Dr. Tahir Soomro, DIG Traffic Saud Mirza, Additional Secretary of Finance, representative from PERK and DG, KMTC which recommended proper incentives to new transport operators as done in the Punjab and noted that it was the only solution for the revival of a proper transport system in Karachi.
The committee observed that though private sector plays an important role in meeting public transport requirements in Karachi, low priority for giving incentives on urban transport operations have discouraged investment and caused a decline in services over a period of time and the situation aggravated further after the withdrawal of public sector transport.
The cabinet approved the recommendations of the committee which include a major route network designed for operation of large buses, one-window facility at transport and communication department (TCD) of the city government with a route premium of Rs50 per bus per day.
A cell will be established by TCD, including RTA and motor vehicle inspectors, to facilitate the operators in functional matters, including harassment by the police.
Two types of buses have been identified for the scheme: buses having a carrying capacity of 50 for all seated and non-AC buses with a seating capacity of 70.
These operators will be given exclusive rights for route and zones subject to fulfilment of route capacity and a minimum of five-year agreement would be signed with them who would also be exempted from certain provision of Motor Vehicle Ordinance and exemption from income tax under the National Urban Transport Scheme.
Import of CNG buses and related equipment would be duty-free as per the government policy.
The Sindh government and the city government will facilitate in leasing out bus stands, workshops and depots to the operators subject to availability, while financing would be done through banks, leasing companies at prevailing rates.
One of the major incentive for these operators will be mark-up subsidy on the pattern of Punjab government, which is four per cent for non-AC and eight per cent for AC urban buses.
While the Provincial Finance Department has opposed taking any financial responsibility by extending guarantee to the lending institutions, they have expressed no-objection if the City Government plays a role to assist the leasing companies in this regard.
According to EDO TCD, Dr. Tahir Soomro, there are about 12,000 public transport vehicles in Karachi, including buses, mini-buses and coaches and no new bus had been introduced on City roads as public carrier during the past two decades.
One of the major reason was lack of any incentive from the government, as a mini-bus and the type of vehicles plying on roads in Karachi cost around a million rupees per piece, whereas a brand new large bus costs more than Rs3 million each, the official added.—PPI