KARACHI: Sindh Chief Minister Syed Murad Ali Shah has decided to give Rs2 billion subsidy to transporters to launch a fleet of 600 vehicles in the city to meet the growing requirement of passenger buses.
Presiding over a meeting on intra-city and intercity bus service here at the CM House, Shah said his government would assist the transporters in the form of a subsidy for a period of five years.
The transporters equity would be 15 percent and 15 percent would be given by Sindh government in the shape of interest free loan, repayable by the transporter within a year of the completion of the loan under Sindh Modaraba Loan Ltd.
The chief minister also said that the government would provide 30 percent credit risk guarantee for the outstanding principal loan amount, excluding the Sindh government equity.
Minister Transport Syed Nasir Shah said that there was a shortage of 8000 buses, therefore a new mechanism be adopted to include at least 600 buses in the present fleet of passenger buses to meet somewhat requirement of the city. “This is necessary and then Bus Rapid Transport (BRT) would be launched.”
The chief minister said that only locally assembled vehicles would be financed. It was also proposed that if the transporter manages to repay all installments on time, maintained the vehicle in roadworthy condition and otherwise fulfilled all obligations, the Sindh government would forgive its portion of the cost of 15 percent.
Giving presentation on Blue Line, Minister Transport Nasir Shah said that it would be started from Al-Asif Square- Sohrab Goth to Golimar. It would be 12-km long route with 6.6 km elevated portion and it would have nine stations. He estimated that at least 3,75000 commuters would avail the new transport facility on daily basis.
Secretary Transport Taha Farooqui said that the route would start from Al-Asif Square via Yousif Plaza, Naseerabad, Ayesha Manzil, Karimabad, Liaquatabad, Daak Khana, Teen Hatti and Guru Mandir.
The chief minister directed the transport department to go ahead and fulfill all requirements to launch the projects at the earliest. The Sindh government would assist the transporters financially and administratively, he added.