115. Badals Orbit widens with big takeovers

Bid to have monopoly over passenger transport

Vimal Sumbly

Tribune News Service

Ludhiana, September 11

Apparently, in a bid to have absolute control over the passenger transport in the state, Orbit Transporters Private Limited and Dabwali Transport Private Limited, owned by the ruling family of Punjab are making takeovers of different transport companies all over the state.

The two companies are learnt to be trying all possible means and methods to buy as many route permits as they can.

This has reportedly led to a massive increase in the prices per kilometre for the route permits. A route permit that would ordinarily sell for Rs 3,500 per km in the recent past is learnt to be now fetching about Rs 12,000 per km.

The two companies have already bought the transport companies which were running in losses, while making fabulous offers to others. And those who are not ready to fall in line are made to lose business by unfair competition.

While some small transporters are making the best of the opportunity with such “hard to resist” offers, others are offering stiff resistance, particularly those operating buses on the profit making routes. On such profit-making routes, parallel buses have already been started.

For example, against the existing timing of a bus from Patiala to Bathinda at 5.06 am, another bus has been allotted the same route at 4.51 am, 15 minutes ahead, with obvious motives. Similarly, from Bathinda to Patiala a parallel bus has been introduced against the existing one which would start at 4.46 am. The new bus will start from Bathinda at 4.28 am. This practice has been adopted on most of the profit-making routes where the existing operators are resisting the takeover bid so that they are forced to give in.

During the recent days, the two companies are learnt to have purchased a fleet of about 12 vehicles along with route permits in Mansa and about 20 buses in Ludhiana. These are also learnt to have bought about 50 buses from a Jalandhar-based defunct transport company.

The takeover bid has shaken the transport industry across the state as it fears that it will give unbridled monopoly to the two privileged companies with full support from the government. The two companies have already got monopoly in the Malwa region, and now the target is the rest of the state.

Industry sources expressed surprise as to why Badals were so interested in transport when it was no longer a profit-making business. Particularly, when the company is buying the route permits for exorbitant prices. If a route permit is valued at about Rs 4,000 per km, the company is buying it at Rs 12,000 per km.

The Transport Department has sought objections, if any, against the transfer of several routes to Orbit Transporters Private Limited, VPO, Badal. While the routes cannot be sold or purchased, the transporters show the transaction of the bus along with the “operating permit”.

Another Gidderbha-based transport company supported by one of the ruling family members who is also a minister, has also jumped into the fray with a few takeovers. But it is nowhere near the Orbit and Dabwali transport companies.

While Orbit Transport Company has its headquarters at Badal village, Dabwali Transport Company is based at Bathinda. Dabwali Transport Company was earlier named Dabwali Transport and Real Estate Private Limited. It has submitted an application with the Transport Department for the change of name.