414-cr Kuthambakkam terminal to open shortly under PPP model

Chennai: After much delay, the 414-crore Kuthambakkam mofussil bus terminal near Thiruvallur is set to become operational in the coming months. The Chennai Metropolitan Development Authority (CMDA) is in the process of appointing a private concessionaire to oversee its operations and maintenance under a 15-year Public-Private Partnership (PPP) model.Spread over a core area of 24.80acres, the upcoming terminal will serve as a major hub for west-bound buses, including services operated by TNSTC and MTC. The state-of-the-art facility features parking for 136 buses, 64 idle bays, 44 commercial shops, dormitories, and a full suite of public amenities. An additional 9-acre area has been earmarked for idle bus parking and a police station.To enhance connectivity, the project includes a newly constructed 36-metre-wide, 2.2-km-long access road from NH-4, covering an extra 18.20 acres—bringing the total development area to 52 acres. “There were a lot of small issues in Kilambakkam even after its inauguration. In Kuthambakkam, all these problems will be addressed beforehand. It will be inaugurated soon after these minor issues are sorted out,” said minister for CMDA P.K.Sekar Babu.The selected concessionaire will be required to establish a Special Purpose Vehicle (SPV) under the Companies Act before signing the concession agreement. A mandatory 15-day trial run must be conducted after fulfilling all preconditions, marking the beginning of the concession period.

The concessionaire will be responsible for managing all terminal operations—including bus bays, public amenities, parking, and commercial spaces—and will be allowed to generate revenue through advertisements, parking fees, and shop rentals. “Importantly, the concessionaire may sub-licence specific services like security or parking but will retain full responsibility for the quality and delivery of services,” said a senior official.