Noida: Special purpose vehicle formed to run city bus service

NOIDA: The Noida authority on Tuesday said that it has formed a special purpose vehicle (SPV) to run the city bus service with an aim to develop a robust public transport system in Noida, Greater Noida, and Yamuna Expressway areas.

Following directions of the Uttar Pradesh government, the three authorities - Noida, Greater Noida, and Yeida - have formed the SPV as the government intends to connect Noida International airport, located in Jewar town, through city bus service with nearby cities, said officials.

The SPV, having additional chief executive officers of all three authorities in its board, will also be named as an institution.

“As we have formed SPV, it will be named and run like a company that will have an onus of finalising an operator that will be engaged in the task of running city bus service. We are likely to approve the terms and conditions of SPV in the upcoming board meeting to be held soon as the date will be finalised now. As per the terms, the authority will bear the funding gap that will be witnessed in running the city bus service,” said Lokesh M, chief executive officer of the Noida authority that will have a major stake in this SPV.

As per the plan, Noida will have 257 electric buses for 13 routes, Greater Noida to have 196 buses for nine routes, and Yeida will have 52 e-buses for two routes, said officials.

As per the terms and conditions approved, the Noida authority will pay ₹9 crore in the funding gap on a monthly basis so that the city bus service runs without any financial hindrance. Officials said that running city bus service is not a profitable work and the authority needs to bridge the gap that will be witnessed in running this service.

“We are ready to bear the financial loss that will be witnessed in running the city bus service. We aim to finalise the operator within two months so that buses can be run by February end, 2025,” the CEO added.

The project, valued at ₹675 crore, aims to address the growing demand for sustainable public transport in the region, said officials.

Once proposals are submitted, the operator is expected to be finalised within two months, provided the process adheres to schedule, said officials. The selected agency will manage the service for 12 years, with each bus covering an annual assured distance of 72,000 kilometres, they added.

The project stems from the Prime Minister’s E-Bus Sewa Scheme that entails deploying 10,000 electric buses nationwide under a public-private partnership model.