Chennai News:  The Metropolitan Transport Corporation (MTC) has received approval from the State Transport Department to run premium bus services on certain routes in Chennai. In September of last year, the department issued a Government Order (GO) requiring the MTC to recruit service providers and prepare a Detailed Project Report. The DPR was to identify the profitable routes where these premium buses may be run, as well as the number of bus services.

According to a senior department official, the proposal to operate premium buses on some routes stems from the MTC's feasibility study to reduce the use of private vehicles, primarily cars, and its inability to cater to commuters willing to pay more for better comfort. Once the DPR is given to the state government, the MTC intends to begin the premium services by the end of March, according to the official.

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According to the GO, the premium buses fall under the premium travel category, offering opulent bus rides with GPS, air conditioners, and roomy seats.

After considering two options for running these opulent buses—direct licensing and employing service providers—the government ultimately chose to pursue the hiring of service providers model.

According to the department official, the hiring model was more appropriate since it would fall within MTC's jurisdiction, avoid needless competition between MTC and commercial operators, and facilitate revenue sharing.