Published On : Wed, May 8th, 2013

NMC, Star Bus Company see red over royalty, concession amount

Nagpur News: The issue of royalty between the Nagpur Municipal Corporation (NMC) and the Star Bus Management is likely to snowball into a major controversy as the Star Bus management has come to the conclusion that the possibility of getting the amount of pass concession, which the Star Bus management is demanding from NMC since the past two years, has faded into thin airs. The Maharashtra Government’s policy, also don’t allow return of pass concession amount on Public Private Partnership (PPP) model anywhere in the state. The result of this situation is pass concession to some people of society is likely to be discontinued by Star Bus management in future. The amount of Star Bus pass concession has reached to Rs 39 crore and the royalty amount to be taken by NMC from Star Bus has come to Rs 1.50 crore.

After the Maharashtra State Road Transport Corporation (MSRTC) stopped its operation of plying buses for city areas within Nagpur, NMC took the responsibility, and accordingly gave contract to Star Bus Company Management Vansh Nimay. The Star Bus Company had agreed to provide concession as provided by MSRTC to students, handicapped persons and senior citizens for travelling in their buses. The agreement between NMC and Star Bus stated that if the Maharashtra Government grants the pass concession amount to NMC, then it would be handed over to Star Bus Company. But till now, not a sinle rupee has been given by the Maharashtra Government.

Since the Star Bus Company bagged the contract for running buses in Nagpur’s different areas two years ago, the pass concession amount has been increasing, and now, has reached to the figure of Rs 39 crore. The Vansh Nimay, running the Star Buses in city, has been demanding the concession amount but NMC puts the ball in Maharashtra Government’s court. Similarly,in Mumbai and Pune, too, buses run on  PPP model and they are also not given concession amount by the Maharashtra Government.

However, the Maharashtra Government puts forth the reason for not giving concession amount to being not informed about concession amount in the agreement. Then the possibility of returning the concession amount to Star Bus Company has been ruled out. Now, Star Bus Company is also considering stopping concession to students, handicapped persons and senior citizens for travelling in their buses causing problems to above-mentioned category of people.

According to sources, the NMC has raised the royalty amount of Rs 1.50 crore to be taken from Star Bus Company. However, the company has flatly refused to return the money to NMC by arguing that the Star Bus Company’s concession amount exceeds the NMC amount by a whopping Rs 39 crore.