KARACHI: The 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 demand of passenger buses.

This he said while presiding a meeting on Intra-city and intercity bus service here at the CM House, said a statement on Wednesday.

The meeting was attended by Minister Transport Syed Nasir Shah, Chief Secretary Rizwan Memon, Chairman P&D M. Waseem, Principal Secretary to CM Naveed Kamran Balcoh, Secretary Transport Taha Farooqui, Secretary Finance Hassan Naqvi and others.

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 Rabid Transport (BRT) would be launched.

The chief minister said that his government would assist the transporters in the form of a subsidy for a period of five years.

"The government gives subsidy of Rs2 billion to be placed with Sindh Modaraba, before the publication of the advertisement," he said. Adding that 70:30 debt equity ratio would be made.

The transporters equity would be 15 percent and 15 percent would be given by Sindh government in the shape of interest free loan.

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.

The transport department also proposed to start an inter-city project under the same mechanism as intra-city is proposed.

Under the proposal, the Sindh government would bear the cost of insurance of the vehicle which would be insured through the Sindh Insurance Lts and that would be around 5 percent of the value of the vehicle.

Murad said that only locally assembled vehicles would be financed. It was also proposed that if the transporter manages to repay all instalments 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 the 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 kms elevated and it would have nine stations, five elevated and three at ground. There would be a ridership of 3,75000 daily.

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 Hati and Guru Mandir.

The chief minister directed the transport department to go ahead and fullfil all requirements to launch the projects at the earliest. The Sindh government would assist the transporters financially and administratively, he assured. -APP