The demonstration, led by the DYFI, called for the immediate cancellation of the contract, arguing that privatisation would negatively impact commuters and government employees alike.
Published Feb 28, 2025 | 9:59 AM ⚊ Updated Mar 03, 2025 | 7:53 AM
Protest staged by the DYFI over the proposal to privatise MTC buses.
Synopsis: A move to privatise 600 electric buses of the Chennai MTC sparked protests. The demonstration called for the immediate cancellation of the contract, arguing that privatisation would negatively impact commuters and government employees. As opposition to the privatisation plan grows, tensions are expected to rise ahead of the 10 March deadline to submit bids, with further protests and political pressure likely to mount.
A move to privatise 600 electric buses of the Chennai Metropolitan Transport Corporation (MTC) has sparked protests, with youth activists gathering outside Pallavan House in Chennai on Wednesday, 26 February.
The demonstration, led by the Democratic Youth Federation of India (DYFI), called for the immediate cancellation of the contract, arguing that privatisation would negatively impact commuters and government employees alike.
According to a report, The MTC, with financial assistance from a German bank, has planned to acquire 600 new electric buses. However, under the proposed contract, private firms will be responsible for operating and maintaining these buses, while also being provided parking spaces.
In case of financial losses, the government will compensate the private operators, a provision that has drawn sharp criticism from transport unions and public advocacy groups.
Various organisations, including the Centre of Indian Trade Unions (CITU), have opposed the move, warning that it could lead to fare hikes, job losses, and reduced accessibility for vulnerable commuters. Protesters demanded that the state government withdraw the privatisation plan, cancel the contract, and refrain from outsourcing public transport operations.
DYFI Tamil Nadu President S Karthik said, “The Chennai MTC operates approximately 3,500 buses, serving 3.1 million passengers daily. While the public demands the replacement of aging buses, privatising the operation of 600 new electric buses will impact nearly 1 million commuters.”
Karthik further cautioned that privatisation could jeopardise free travel programs for women, students, senior citizens, and differently-abled passengers.
Additionally, he raised concerns that the move would eliminate nearly 2,000 government jobs, including positions for drivers, conductors, and technical staff, and undermine job reservations for marginalised communities.
He also accused the government of setting a precedent for broader privatization in Tamil Nadu, stating, “We will not accept the transfer of public transport operations to private hands. If the contract is not revoked by March 10, we will escalate our protests, including road blockades.”
Speaking to South First, Thayanandham, a CITU member from Chennai, emphasised the issue of job security.
He said: “Introducing 600 buses should mean new employment opportunities, but instead, this plan allows for outsourcing, which means these jobs will not be permanent, pay will be low, and there will be no reservation. Even maintenance is being outsourced. This is why the youth are protesting.”
Other speakers at the protest included MR Suresh, T Sanduru (South Chennai), K Manikandan, Lo Vignesh (Central Chennai), Nithyaraj, and Abirami (North Chennai).
The privatisation debate gained momentum following the release of a contract notice by MTC on 12 February, which specified that the new fleet would be operated exclusively by private firms. Critics argue that this will allow private entities to monopolize operations while shifting risks to the public sector.
A key concern raised by transport unions is that privately operated buses may not adhere to existing policies for concessional travel. “Women, students, and senior citizens depend on government buses for free or subsidized travel. There is no guarantee that private operators will honor these schemes,” said a representative of a transport workers’ union.
As opposition to the privatisation plan grows, tensions are expected to rise ahead of the 10 March deadline to submit bids, with further protests and political pressure likely to mount. The debate over the future of public transport in Chennai continues to be a contentious issue, with unions, activists, and commuters demanding government accountability and transparency in the decision-making process.
According to the tender notification released by MTC, the project involves the Procurement, Supply, Operation, and Maintenance of 600 Low-Floor Electric Buses under a Gross Cost Contracting (GCC) basis as part of Phase 2 of the initiative.
The tender process commenced on 11 February with the availability of documents for download. A pre-bid meeting was scheduled at 3 pm on 20 February, allowing prospective bidders to clarify any queries.
Bidders could upload documents beginning at 12 pm on 10 March. The deadline for submission is at 4 pm on 3 April and the proposals will be opened on the same day. Additionally, an earnest money deposit (EMD) of ₹3,00,00,000 is required for participation.
The Metropolitan Transport Corporation reserves the right to accept or reject any tender without providing any reason.
(Edited by Muhammed Fazil.)
