Assam Budget: Government intends to put 1000 new buses on Roads by next three years

Guwahati: Acknowledging the fact that there is less than 3 bus per 1,00,000 persons in the State as compared to the national average of 40 per 1,00,000, Finance Minister Himanta Biswa Sarma in his budget speech on Wednesday announced that the Government of Assam is intended to put 1000 new buses on the roads of Assam over the next three years.

He further stated addressing the August House at Assam Legislative Assembly that there is a need to create a mechanism to augment ASTC’s efforts while ensuring that the operational cost of running the bus is minimized.

In order to address this long-standing and basic issue, the Government has come up with a novel scheme that will not only increase the availability of public transport services but will also encourage local entrepreneurs to enter this service industry.

“We believe that this initiative will ‘uberize’ ASTC, adding to its efficiency and agility. Under this scheme, we will encourage young entrepreneurs, small businesses and Self-Help Groups to enter the industry. Initially to generate enthusiasm and momentum, the Government will provide seed money to the extent of 25% for purchasing buses, out of which 10% will be given in the form of subsidy while the rest 15% will be given in the form of an interest-free loan to be repaid over a period of 5 years,” said Finance Minister Himanta Biswa Sarma today.

The Minister also claimed the move from an asset-heavy approach of procurement and operation of buses by ASTC to an asset-light approach of becoming a transport platform by engaging the private sector to provide the services, will be a game changer.

The Government is also looking forward to allowing the private players to operate the buses, ensuring that the passengers are not over-charged for the service and that buses are available on all routes across Assam – especially those connecting our villages, such that the service providers will not be able to cherry-pick their routes.

It may be mentioned that the Assam State Transport Corporation will now start playing a regulatory and facilitatory role.

Also, for good quality public transport services, the Government will also adopt initiatives for infrastructure improvement of the existing bus terminus in the State as well as the creation of new facilities wherever required, informed the Finance Minister.

Thus, a sum of Rs 70 crore in the current budget to kick-off this important scheme and will recoup the budget for this scheme on the off-take.