The Cabinet meeting was held on Tuesday in the Ministry under the chairmanship of Chief Minister Dr. Mohan Yadav. The Council of Ministers approved the launch of 'Mukhyamantri Sugam Parivahan Seva' to provide organized, convenient, and safe passenger transport bus services on urban and rural routes in Madhya Pradesh. The plan involves structured traffic, route surveys, and bus frequency determination to operate passenger buses in an organized manner. The Council decided that the private sector would provide safe and regulated passenger transport services.
To initiate this transport service, Rs.101.20 crore was approved as seed capital. Additionally, approval was granted to form a state-level holding company. Currently, 20 cities in Madhya Pradesh have SPVs (Special Purpose Vehicles) under the Companies Act for public transportation, of which 16 are operational. These companies will be merged into seven divisional companies. A holding company will be formed under the Companies Act, 2013, to oversee these seven companies. The decision includes closing the existing transport companies in Rewa and Gwalior and forming new regional companies.
Necessary amendments will be made to the Madhya Pradesh Motor Vehicle Rules, 1994, with the administrative department proceeding as per legal procedures. The transport-related assets currently used by city transport companies will remain under their control. Bus terminals, bus stands, and stops developed using municipal funds will be upgraded in collaboration with the holding company to enhance passenger facilities.
For operating Mukhyamantri Sugam Parivahan Seva, a PPP model will be adopted to develop high-quality transport infrastructure. Private bus operators will be regulated through a transparent process using a digital IT platform. The entire bus operation will be monitored through an IT-based system, ensuring compliance with Service Level Agreements (SLA) and Key Performance Indicators (KPI) for passenger convenience and safety.