The Hindu Business Line : KTDFC to modernise transport infrastructure in Kerala

The objective of KTDFC’s modernisation project is to guarantee passengers amenities and comforts on the lines of those available at modern airports or metro stations in Delhi or in any European city. - JACOB THOMAS, MD, KTDFC

Jacob Thomas, MD, KTDFC

V. Sajeev Kumar

Kerala Transport Development Finance Corporation Ltd, an NBFC offering vehicles loans to individuals and transport operators, has chalked out an ambitious programme to modernise the transport infrastructure in Kerala. Dr Jacob Thomas, Managing Director, spoke to Business Line in this regard.

Excerpts from the interview:

On the functions of KTDFC

KTDFC was established in 1991 with the specific objective of providing financial support to infrastructure development in the transport sector. In addition to financing road transport vehicles, it has embarked on an ambitious programme to modernise the bus stations located in prime locations throughout the State.

During the first phase, six KSRTC bus stations — Angamaly, Kozhikode, Malappuram, Trivandrum Central, Fort and Peroorkada — will be taken up for modernisation followed by nine stations. The remaining 15 bus stations will be taken up in the third phase.

The Angamaly bus station modernisation programme has been selected as a pilot project in order to streamline the process of converting the present day format of KSRTC bus stations into a modern form.

The best architects have been selected for designing the work. At Angamaly, work has already begun with the foundation stone laid by the Chief Minister in May. Once the replicable model is streamlined at Angamaly, Kozhikode and Trivandrum Central, the process of modernising other bus stations will be speeded up.

The tender for the Kozhikode bus station project was launched through the e-tender mode, using the services of an e-tender service provider at Ahmedabad which has links with construction companies across the country.

For the first time in Kerala, a civil construction project is being tendered by a Government agency through the e-tender mode, which ensures greater competition, transparency and economy.

Based on the pilot experience, innovative processes are incorporated in the tender to attract more competition like price escalation cost for cement and steel, mobilisation advance, payments within a definite time limit, on-site and of-site modern monitoring norms.

This is expected to remove several hurdles, the most common being the sudden stoppage of work by contractors of PWD, Municipal Corporation, KSEB, KWA etc. on the ground of rise in raw material prices, inordinate delays in receiving payments or huge initial expenditure.

Objective behind modernisation

The objective of modernisation is to guarantee amenities and comforts to passengers on the lines of those available at modern airports or metro stations in Delhi or in any European city.

There will be covered bus bays and appropriate display boards. The drivers and crew also will be provided with amenities for their rest and leisure to prevent accidents caused by their fatigue. The facilities for parking and maintenance of vehicles too will be modern.

Total investments anticipated

The cost of each project will range between Rs 20 crore and Rs 50 crore and thus the modernisation of a total of 30 bus stations over next two years will cost more than Rs 1,000 crore.

KTDFC will maintain the commercial complexes till completion of the BOT period in the same impeccable manner as it has operated and maintained the trans-towers in Thiruvananthapuram as a model public facility.

On plans to utilise land assets of KSRTC

KSRTC’s assets, mostly high-value lands in urban areas, are grossly under-utilised. There are plans to achieve better utilisation of these assets through proper commercial development to attract retail outlets, bank branches, modern toilets, restaurants and even mini cinema halls so that the passengers coming from hinterland to town by KSRTC buses are not required to go out of the bus stations for marketing and entertainment.

This will also ease the traffic congestion in many of the towns. Once KSRTC bus stations become fully operational, the private bus operators may also feel tempted to use the facilities available at the stations and thus some sort of public-private partnership might emerge to meet the transportation requirements of the state.

On the company’s financial position

KTDFC is a profit-earning organisation though its objective is not so much to earn profits as to provide loans to borrowers at competitive interest rates.

Hence the net interest margins are very thin.

The company has been making profits ever since its inception. Based on its reputation as a well-managed government financial organisation, it can source funds independently from the market to finance the bus station infrastructure development.

Total loans disbursed so far

So far, KTDFC has advanced about Rs 1,000 crore as loans, of which about Rs 850 crore has been lent to a single borrower, KSRTC, which has been repaying systematically since 2001 through an escrow mechanism from its daily collections at depots on equated daily instalment (EDI) basis. Other borrowers are also repaying regularly.

Any plans to finance KSRTC to purchase new buses?

KTDFC will finance purchase of buses not only by KSRTC but also by any other operator.

KTDFC will try to meet, as far as possible, every requirement of borrowers planning to purchase buses, a key component of the State’s transportation infrastructure.

More Stories on : Interview | NBFCs | Roadways

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NW1: A connector awaiting development

Eyeing the berth of a port trustee

Shipping sector hit by meltdown

KTDFC to modernise transport infrastructure in Kerala

Finance Ministry suggests re-tendering

Export slump costs Railways