Karnataka BJP objects move to hand over bus shelters to pvt agencies sans bid

  • | Saturday | 29th April, 2017

MANGALURU: Opposition BJP effectively delayed a move by standing committee of Mangaluru City Corporation to entrust construction of 18 bus shelters in across the city to two private agencies on build, operate and transfer (BoT) basis. MCC should not go ahead with the proposal to help private agencies based on committee's decision. Mohammed Nazeer, commissioner said the proposal is yet to be placed before the council for approval and as per rules, MCC cannot allow agencies to build shelters without selecting them through bids. The committee wanted to bypass the established process of entrusting work to private agencies without selecting them by competitive bidding process or through auction process, a move that would have earned MCC higher revenue. This is a commercial venture by the agencies as they could collect huge amount from the advertisers.

MANGALURU: Opposition BJP effectively delayed a move by standing committee of Mangaluru City Corporation to entrust construction of 18 bus shelters in across the city to two private agencies on build, operate and transfer (BoT) basis. The committee wanted to bypass the established process of entrusting work to private agencies without selecting them by competitive bidding process or through auction process, a move that would have earned MCC higher revenue. Vijaya Kumar Shetty , corporator from opposition BJP in MCC questioned the rationale of the standing committee for taxation, finance and appeals to allow two agencies to construct the shelters on BoT basis at the monthly meeting of the council on Friday. The standing committee in its meeting on February 25 permitted the two agencies to construct the shelters on the condition that they should pay the civic body Rs 40,000 as ground rent per shelter per year.The bus shelters will be under control of those agencies for three years. Naveenchandra K and Surendra, BJP members on the standing committee opposed decision of the Congress dominated seven-member committee on grounds that the corporation cannot do so without inviting bids or by selecting them through auction process. According to sources in the civic body, one of the private agency belonged to a close relative of a ruling party MLA in the city.Vijaya kumar said out of the two agencies the committee permitted, one agency to build 15 shelters and another one has been permitted to build three shelters. This is a commercial venture by the agencies as they could collect huge amount from the advertisers. On the other hand, agencies need to pay only minimal ground rent to MCC and tantamount to converting government property as private property for three years and earning profit at the cost of the civic body, he said.The corporation on the other hand could earn huge advertisement revenue and the same could be used for development works if it went ahead on constructing the bus shelters. MCC should not go ahead with the proposal to help private agencies based on committee's decision. Mohammed Nazeer, commissioner said the proposal is yet to be placed before the council for approval and as per rules, MCC cannot allow agencies to build shelters without selecting them through bids.

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