Keeping in line with its court promise, the Public Enterprise Reform Commission called for fresh bids to infuse private ownership into the cash starved 13 state transport companies.
PERC said it was offering a 39 percent equity stake, out of the shares currently held by the Treasury on behalf of the government.
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rnProspective investors have to enter into a management contract and run the bus companies either directly or through a management company.rn
rnUnder the new rules, a single or related party can own up to three bus companies.rn
rnIn the event the single investor or its related party wishes to take up more bus entities, they have to tie up with reputed local firm having an annual turnover in excess of Rs. 500 mn and shareholders equity of over Rs.
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100 mn in 2001.rn
rnPERC said a management fee would be paid only if an investor ties up with a management company.rn
rnDuring its first year of operation, the government will assist bus companies to raise funds for working capital and inves