AMRITSAR BUS

TERMINAL
SERVICE PROJECT

-Submitted by,
Beenish Safdar
INTRODUCTION:
Buses are the predominant mode of motorized public transport in Indian cities. Success of bus
based public transport largely depends on the supportive infrastructure, which facilitates the
smooth functioning of the service, its providers and benefactors. Bus stops, bus terminals and
depots form the supporting infrastructure components for operation of bus services. A bus
terminal is the point where a bus route starts or ends, where vehicles stop, turn or reverse, and
wait before departing on their return journeys. It is also where passengers board and alight
from vehicles. Bus terminals constitute one of the major category of supportive infrastructure
which assist the effective, timely and comfortable movement of bus services for both city based
and inter-state operations.
The 12th FYP envisages an investment of INR 1280 crore for development of bus terminals in
India, with PPP as the preferred mode of development. Land for development of terminals
would be provided by the government for over 2000 terminals identified for development.
With the huge fund requirements and the enhanced focus on leveraging private sector
investments, PPP emerges as a logical solution.

HOW IT ALL STARTED:

PPP in bus terminal development has picked up mixed precedence in India since early 2005.
Over the period, bus terminals from a mere point of transit for passengers have grown into
active commercial hub with more advanced amenities. The role of a private partner offering
technical expertise and financial feasibility, thus is explored to facilitate construction of a
modern bus terminal under PPP mode. Private Player, in the context of bus terminal
development, refers to private real estate developers and private terminal operators. Being a
support infrastructure to the increasing bus transportation network, terminals have the
potential to serve the commercial interest of the developer. While facilitating a comfortable
journey and riding experience, it can generate revenue through rental space, commercial
advertisements and fees levied from the private sector proponent (commonly referred as ‘adda
fees’).
PPP STRUCTURE OF THE PROJECT:
The bidding for the project was announced by DoT, GoP and the 2-stage bidding process was
thought out where the variable and crucial parameter to accept was the concession
period.Under this process, the contract was awarded to Rohan Rajdeep Infrastructure (a
partnership between Rohan Builders (India) Pvt Ltd., Rajdeep Buildcon Pvt Ltd and Rajdeep
Road Developers Pvt. Ltd.)
Subsequent to signing of the concession agreement, the private operator established a Special
Purpose
Vehicle (SPV) called the Rohan Rajdeep Infrastructure (India) Pvt Ltd. for executing the project.
Under the concession agreement, the private operator was responsible for finance, building,
operations and maintenance of the Amritsar Intercity Bus Terminal complex for a concession
period of 11 years and 5 months.
The private operator was required to pay a project development fee of 35 lakhs for the project
site lease and a lease rental of 50,000 per month for use of the project site over the concession
period

Within the concession agreement, two potential revenue streams for the private operator were
identified. The first revenue stream was through the operations of the bus terminal. The private
operator had the right to collect from
Bus operators what was termed as “adda fees” which was the charge payable by buses for use
of the terminal facilities? The second source of revenue was commercial rentals from shops
located within the Intercity Bus Terminal complex. Other sources of revenue included the sale of
advertising rights as well as parking fees

REASON WHY IT WAS PROPOSED:

Amritsar not only being a spiritual center for Sikh community it also attracts tourists from across nation
who visit Golden Temple. Along with this it has been a trade hub traditionally, Wagha Border has also
provided an opportunity for it to develop as a trading center for cross border commercial center. Along
with this large population uses public transport for movement across state.

Need- The existing bus terminal was established in 1965 on GT Road which included administrative
areas, passenger waiting area as well as amenities. But due to demand pressures, traffic at terminal far
outstripping the facilities and the existing terminal building in state of disrepair, the department of
transportation (DoT), Government of Punjab (Gop), facilitated by Punjab Infrastructure development
Board (PIDB) decided to modernize and develop the existing bus terminal through BOT (built, operate,
transfer) route.
Objective – The objective of the project was to demolish the existing bus terminal building and Complex
to develop a modern state of art intercity bus terminal. Time period – The time period for the SPV was
11years 5 months including construction period which was 18 months.

Financing – The project cost was estimated to be Rs.19 crores at time of the project conception but due
to increase in the input costs during construction period and quality assurances maintained by the
private operator, the final project cost was Rs.21.34 crores.

Revenue for government – Monthly lease rental of Rs.50000/month from private company and one time
project development fee of 35 lakhs.

Revenue for private company - Through collection of “adda fees” from busses that use bus terminal as
well as user charges for amenities provided to customers
CURRENT STATUS:
Subsequent to the signing of the concession agreement in February 2004, Rohan Rajdeep Infrastructure (India) Pvt.
Ltd. was able to complete project development before the predetermined time frame and the Amritsar Intercity Bus
Terminal complex was commissioned in October 2005.

The project is operational. The bus terminal presently services, on an average, 1,100 normal buses and 600 mini
buses a day and about 80-100 buses are parked within the Terminal complex overnight. While the Bus Terminal was
expected to handle 2,000 to 3,000 buses per day, it presently handles approximately 1,700 buses a day. One of the
reasons for these lower bus numbers is the inability of the private operator to ensure that all buses use the Intercity
Bus Terminal facilities as per the schedules

https://www.pppinindia.gov.in/toolkit/ports/module3-rocs-aibtp3.php?links=aibtp3

file:///C:/Users/Beenish%20Safdar/Downloads/25281064-bb52-4ea9-b7f8-43c3f14145dc-
150920031121-lva1-app6891.pdf

https://www.slideshare.net/NISHCHAYSAXENA/cia11420023?from_action=save

https://shaktifoundation.in/wp-content/uploads/2017/06/Final-Report-PPP-Models-for-Sustainable-
Urban-Transport-Systems.pdf

https://www.academia.edu/38817584/AmritsarInterCityBusTerminal_MonuSingh

https://edoc.pub/amritsar-intercity-bus-terminal-project-pdf-free.html