Transportation Minister Gurbaksh Chahal has set a deadline for cities to complete the first round of tender bids for public transport projects, including railroads, for the next six years.
In his second budget speech, Chahals said the tender process was expected to finish by September 30, 2022, when the public tender will be open for bids from across the country.
“It is essential to ensure that a competitive tender process is conducted, so that the right projects are funded and ready to go for the transport sector,” Chahels said.
For the second round of tenders, the Ministry of Road Transport and Highways has decided to award the most amount of contracts by a whopping 70 percent.
The Ministry of Railways will award 662 contracts, up from 618 last year.
The rest will be awarded to private entities.
India is one of the few developed countries where the private sector is still a dominant player in public transport.
Chahals also announced that he will set up a task force to look into ways to increase the number of buses in India.
He said there are around 5 million buses in use in the country, and they are used mainly by the poor and marginalised.
Railways will be responsible for paying for the construction and maintenance of new buses, as well as the construction of the network itself.