In the wake of reports that the RTC would be privatized, the government is getting ready to give on lease valuable RTC lands to private parties on BOT (Build, Operate and Transfer) mode to raise funds to run the organization.

RTC owns very valuable lands in almost all towns of the state and the government has identified 44 lands to be leased out on priority basis and in the first instance 16 lands would be handed over to private parties on 30 year lease period.

The government expects to raise Rs.1000 Cr revenue in the first five years through the implementation of the plan.

In the first round, the RTC management has called for tenders for the 16 lands and tenders for two of them would be finalized in a week.  Tenders would be called again for the remaining 14 lands.

In fact, the RTC’s decision was very old and the management had already given most of its land at Musheerabad depot in Secunderabad to private parties on lease. Soma Enterprises, which has taken the land on BOT basis and paid Rs.8 Cr as first installment, went back on its promise and decided to cancel the lease agreement. It is under dispute now in a court of law.

8 bus stands pledged

The RTC management has so far pledged to various banks 8 important bus stands including the prestigious ones at Vijayawada and Guntur to raise funds. That the bus stands were pledged to banks was not known to even RTC workers’ unions.

RTC’s losses this financial year alone are projected at Rs.480 Cr and the total deficit over the years is put at Rs. 3000 Cr. (J)