News Tamil Nadu

Kilambakkam Bus Stand: The Controversial Contract With BVG And The Utter Confusion In Operation

January 1, 2024
The Commune

The Kilambakkam Bus Terminus (KCBT), a project initiated during the AIADMK regime in February 2019, was inaugurated on 30 December 2023, amidst a flurry of confusion and operational challenges.

Equipped with modern amenities, the facility boasts the capacity to accommodate a staggering 1.5 lakh passengers daily, with provisions for almost 800 omni buses and 1000 government buses. There is a statue of the late DMK patriarch Karuananidhi placed at the entrance.

The newly inaugurated terminal, also known as the Kalaignar Centenary Bus Terminus, has been drawing attention for its well-lit interiors while also being in the news for the logistical hurdles faced by passengers and mainly the concerns about the contract awarded to BVG India Limited for operation and maintenance.

The primary objective behind the construction of this bus station was to alleviate traffic congestion in Perungalathur, Vandalur and further inside the city. However, poor planning seems to have put the KCBT in a mess which many fear is only going to defeat the very purpose for which it was created.

Operational Confusion And Refund Demands

As reported by Times of India, operational confusion has marred the initial days of KCBT’s functioning. Apparently, only State Express Transport Corporation (SETC) buses operate from the new KCBT terminus in Kilambakkam. Buses to Bengaluru, Vellore, and those that ply via ECR will continue to operate from Koyambedu. Six divisions of Tamil Nadu State Transport Corporation (TNSTC) and private buses heading to and from southern districts would shift their operations to KCBT after Pongal. 

So, buses from southern districts will now make their stops at Kilambakkam, which is a considerable 33 kilometers away from Koyambedu located inside the city. Similarly those residing inside the city wanting to go to Madurai or Tirunelveli will have to go all the way to Kilambakkam to board their buses. 

Many passengers who had boarded the buses thinking it would go to Koyambedu were caught clueless when they were asked to alight at Kilambakkam saying it is the last stop leaving the passengers stranded at the gates of the city. The furious passengers demanded refunds but it is reported to take a few days. Some passengers express dissatisfaction, particularly daily wage earners who find themselves out of pocket due to unexpected terminus changes.

“I came from Madurai and had booked tickets up to Koyambedu. But the service terminated at KCBT. The officials here told me that the balance money of 30 will be refunded into my account. Some passengers, who are daily wage earners were upset.“, a passenger was quoted saying in the Times of India.

Connectivity between Koyambedu and Kilambakkam is a work in progress and the Transport Minister Sivasankar has said that MTC buses at short regular intervals would ply between Kilambakkam and different parts of the city like Broadway, Adyar, Poonamallee, etc, which is bound to increase vehicular traffic.

A 15-Year Contract Period For A Private Firm

The KCBT has garnered attention for its clean interiors adorned with Tamil Nadu cultural paintings. However, the absence of shops and facilities for differently-abled individuals has been noted. Weary passengers navigating the premises and confused commuters seeking direction have highlighted the need for immediate improvements.

What has stirred the pot of controversy is the decision by the Chennai Metropolitan Development Authority (CMDA) to entrust the maintenance and operation of the Kilambakam Bus Stand to BVG India Limited, a private company hailing from Maharashtra.

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First let us start by understanding who this firm is. BVG India or Bharat Vikas Group is a Pune-based housekeeping firm. The firm is involved in the stewardship of prestigious locations like Rashtrapati Bhavan, the Supreme Court, and Chennai Airport’s domestic terminal. It has now added Kilambakkam Bus Terminus to its portfolio. BVG is also responsible for maintenance at multiple Chennai Metro stations. 

Controversies

In 2018, a case was filed against BVG alleging corruption in a ₹16-crore contract awarded to BVG for mechanized housekeeping at four hospitals run by the Navi Mumbai Municipal Corporation (NMMC). Allegations included the health department increasing the contractor’s profit margin and discrepancies in payments and supplies.

In 2019, the Income-Tax department detected undisclosed income of ₹180 crore during searches at BVG’s premises in Pune. The search also revealed issues such as a bogus claim of brought-forward losses of ₹91 crore and unsubstantiated purchases of Rs 77 crore, without explicitly naming BVG in the statement.

Now comes the controversy surrounding the contract awarded to BVG India Limited for the operation and maintenance of KCBT which has raised eyebrows. The 15-year contract reportedly signed at a meagre ₹2.4 crores per year, is being scrutinised for potential revenue loss to the government.

The contract outlines an entry fee for buses, with estimates suggesting potential revenue of up to ₹50 crores annually from various sources such as bus entry fees, shop rentals, dormitories, and advertising. Here is a breakdown of it:

  • BVG is entitled to collect a User Fee at Kilambakkam terminus for various services, including entry fees for omnibuses and government mofussil buses.
  • Entry fees for buses are fixed by CMDA: ₹150 per day for omnibuses, and ₹25 for government buses.
  • A minimum of 1100 buses, including 400 omnibuses, are expected to use Kilambakkam terminus daily.
  • Estimated annual revenue from entry fees alone is around ₹3.20 crores.
  • BVG can rent out 105 shops covering 45,790 sq. ft. at ₹500/- per sq. ft., generating an annual income of ₹27.47 crores.
  • Income from dormitories, two and four-wheeler parking, and advertisements are estimated at ₹2 crores, ₹6 crores, and ₹10 crores per year, respectively.
  • Total projected annual earnings for BVG at Kilambakkam terminus are ₹48.60 crores.

However, concerns arise as BVG India Limited is expected to pay only ₹2.4 crores annually to the Chennai Metropolitan Development Authority (CMDA) as a concession fee.

Legal Scrutiny And Accessibility Concerns

The Kilambakkam bus terminus faces legal scrutiny, with social activist Vaishnavi Jayakumar highlighting non-compliance with accessibility guidelines. The Madras High Court has directed the government to provide an access audit report, but delays have been reported.

Vaishnavi contends that the terminus lacks disability-friendly features, particularly a common-level boarding platform for high-floor buses. The next court hearing is scheduled for 24 January 2024.

Connectivity Challenges & Commuter Chaos

One major concern is the lack of connectivity between the existing Koyambedu bus terminus and the city to Kilambakkam. This absence may lead to chaos and difficulties for passengers during the upcoming Pongal festival, causing inconvenience and turmoil for those trying to reach Kilambakkam.

Government Response & Transparency Claims

As reported by Savukku Media, CMDA Member Secretary Anshul Mishra IAS has refuted allegations of impropriety, asserting that the tender process was transparent. He emphasised that the government is not spending on the operation and maintenance, as BVG India Limited is paying a substantial sum to CMDA. Mishra assured the public of the terminus’s accessibility, issuing a travel advisory for passengers’ convenience.

Stalin’s Previous Stand On Privatisation

Back in 2020, when the central government decided to privatise airports, the then TN Assembly opposition leader and DMK President MK Stalin voiced his disapproval, asserting that the move “encroaches” upon the state’s rights and autonomy. The decision to lease out airports, including Thiruvananthapuram, under a public-private partnership (PPP) model to Adani Enterprises drew criticism from the DMK leader, who deemed it a unilateral action.

Taking to social media platform (then Twitter), Stalin expressed his discontent, stating, “The Center’s unilateral decision to privatise airports usurps the rights and autonomy from the State. It violates the pledge made in 2003 that any proposal concerning airport privatisation would be made only in consultation with the state government and must be revoked.” 

The same Stalin has now, in a move seen as “tearingly hurried”, given the contract to a private entity, questioning the motive behind the move in itself. 

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