BMTC officials outlined the corporation's procurement ecosystem, stating that materials worth nearly Rs 9 crore were purchased each month through the Karnataka Public Procurement Portal (KPPP). This disclosure came as part of a broader strategy to enhance financial sustainability.
Lease Plan to Generate Non-Fare Revenue
The Bengaluru Metropolitan Transport Corporation (BMTC) has announced plans to lease 3 lakh square feet of its land holdings to monetise assets and boost non-fare revenue. The move is aimed at diversifying income sources beyond ticket sales, which have been under pressure due to rising operational costs and competition from ride-hailing services.
According to BMTC officials, the leasing initiative is expected to generate significant recurring income. The corporation owns several prime parcels of land across the city, including depots and bus stations, which will be offered on long-term leases for commercial development.
Details of the Monetisation Strategy
The 3 lakh sq ft earmarked for leasing represents a portion of BMTC's total land bank. The corporation will invite bids from developers for constructing shopping complexes, office spaces, or other commercial facilities. BMTC will retain ownership of the land while earning lease rentals.
Officials emphasised that the leasing would not disrupt bus operations. Only surplus or underutilised land parcels will be considered. The revenue generated will be used to subsidise fares, upgrade bus fleets, and improve passenger amenities.
Procurement Ecosystem and Monthly Spending
During a recent review meeting, BMTC officials highlighted the corporation's procurement processes. Materials worth nearly Rs 9 crore are purchased monthly through the KPPP, ensuring transparency and competitive pricing. This includes spare parts, tyres, fuel, and other consumables essential for fleet maintenance.
The procurement portal has helped streamline purchases and reduce costs through bulk ordering and vendor registration. BMTC aims to further optimise its supply chain to achieve better value for money.
Impact on Financial Health
BMTC has been grappling with financial losses, exacerbated by the pandemic and changing commuter habits. Non-fare revenue currently accounts for a small fraction of total income. The leasing plan is expected to contribute substantially to bridging the revenue gap.
Officials expressed confidence that the initiative could set a precedent for other state transport undertakings. The corporation is also exploring other non-fare revenue streams, such as advertising rights and rooftop solar installations.
Asra Mavad reported on 02 July 2026, highlighting BMTC's strategic shift towards asset monetisation. The corporation aims to complete the leasing process within the next fiscal year.
