NMC cancels tender for advt rights on city buses
Anjaya Anparthi | TNN | Jan 5, 2019, 03:41 ISTNagpur: Having failed to give contract to a particular private agency, the Nagpur Municipal Corporation (NMC) city transport department has cancelled the tender for giving advertisement rights on 387 Red buses. The decision has been taken even as NMC’s legal department has suggested to open bids received for the tender.
The controversy over the tender is causing financial loss to the cash-strapped civic body. The new city bus service — Aapli Bus — launched in December 2016 is facing a financial loss of over Rs100 crore per annum. The civic body is delaying payment to the three operators, programme manager DIMTS and two ticketing agencies every month. Despite these problems, the city transport department has not given advertisement rights on buses for the last two years.
The tender process was initiated six months ago and cancelled on December 31 last year. The controversy started after bid of Om Advertisers, having advertisement rights of buses of the Maharashtra State Road Transport Corporation (MSRTC) across the state, was not accepted though a day was remaining for the deadline. The agency filed a petition in the Nagpur bench of Bombay High Court levelling serious allegations against the NMC. The bid was accepted following HC directive.
Later, the department slowed down the process and planned to cancel the tender. But the NMC legal department suggested that the bids should be to opened.
An official from the department said tender has been cancelled following directives of city transport committee chairman Bunty Kukde. “Total five agencies participated in the tender. Four agencies have taken objection on accepting bid of fifth agency. Therefore, Kukde directed to cancel the tender,” the official said.
Kukde did not respond to TOI calls and message.
Inder Porwal from Om Advertisers said department has violated norms by cancelling the tender. “Department can cancel the tender after opening the bids and giving a proper reason. But the department did not open the tenders and also did not give proper reason before cancelling the tender,” he said.
The controversy over the tender is causing financial loss to the cash-strapped civic body. The new city bus service — Aapli Bus — launched in December 2016 is facing a financial loss of over Rs100 crore per annum. The civic body is delaying payment to the three operators, programme manager DIMTS and two ticketing agencies every month. Despite these problems, the city transport department has not given advertisement rights on buses for the last two years.
The tender process was initiated six months ago and cancelled on December 31 last year. The controversy started after bid of Om Advertisers, having advertisement rights of buses of the Maharashtra State Road Transport Corporation (MSRTC) across the state, was not accepted though a day was remaining for the deadline. The agency filed a petition in the Nagpur bench of Bombay High Court levelling serious allegations against the NMC. The bid was accepted following HC directive.
Later, the department slowed down the process and planned to cancel the tender. But the NMC legal department suggested that the bids should be to opened.
An official from the department said tender has been cancelled following directives of city transport committee chairman Bunty Kukde. “Total five agencies participated in the tender. Four agencies have taken objection on accepting bid of fifth agency. Therefore, Kukde directed to cancel the tender,” the official said.
Kukde did not respond to TOI calls and message.
Inder Porwal from Om Advertisers said department has violated norms by cancelling the tender. “Department can cancel the tender after opening the bids and giving a proper reason. But the department did not open the tenders and also did not give proper reason before cancelling the tender,” he said.
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