North-Western Karnataka Road Transport Corporation explores property monetisation to get additional revenue

The North-Western Karnataka Road Transport Corporation (NWKRTC), the public transport lifeline of the Kittur Karnataka region, has been often talked about as a loss-making entity for several years now. The corporation has now initiated the process to get additional revenue by renting out some of its unused or underused buildings and open spaces.

Spread over six districts and operating more than 4,800 buses, the NWKRTC is facing a revenue shortfall due to the burden from two years of the Covid-19 pandemic and hikes in diesel prices. This led the corporation to come up with an initiative to generate additional non-transport revenue by renting out some buildings and open spaces. It is also intensifying efforts to get advertisements on buses.

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Gokul Road is a prime area in Hubballi City and the NWKRTC has called for bids to rent some of its properties on this road. After the Hubballi Rural Division Office and other offices were shifted to the building at the City Bus Terminus, the NWKRTC invited applications through e-procurement from interested parties to rent out a few buildings and open spaces on Gokul Road.

The plan is to get Rs 3.47 lakh in monthly rent for the NWKRTC's Samrat Garden Hall, Rs 3.70 lakh for the open space behind it, Rs 2.69 lakh for two floors of the old divisional office building and Rs 2.71 lakh for the ground floor of the building in front of the NWKRTC Central Office.

Applications have also been invited to conduct commercial activities at five open places in front of the new bus stand on Gokul Road and over Rs 19 lakh in total monthly rent is expected from this.

Similarly, the NWKRTC authorities plan to monetise its properties that are unused or underused in other places across the region.

Petrol stations a good option?

NWKRTC Managing Director Bharath S told DH that efforts were under way to rent out properties not in active use wherever possible, while 35 places across the region have been identified to rent out to petrol stations. The tenders for this would be floated shortly.

The display of advertisements is allowed on 1,500 buses and the tender process is on to allow ads on 1,500 additional buses. A total of 200 additional stalls would also be allotted at bus stands, said Bharath.

"Even with the loss incurred due to different reasons including the Covid-induced lockdown, the burden is not transferred to passengers and the bus fare has not been increased," Bharath added. "After a gap of two years, good business is expected during the festive season of October this year."