45-year private lease plan for Erode Corporation’s bus terminal draws flak
Erode Corporation's proposal to lease three acres of a central bus terminal to a private entity for 45 years has faced backlash from local stakeholders. Critics argue the move is unnecessary given the terminal's existing revenue and fear potential long-term neglect of the facility.
Why it matters
The controversy reflects broader tensions regarding the privatization of public infrastructure and the efficacy of the PPP model in urban development.
The Erode Corporation’s plan to lease out three acres of land at the Independence Day Silver Jubilee Central Bus Terminus to a private entity for 45 years has sparked strong opposition from councillors, trade unions and commuters.
Established in 1973, the bus terminal caters to more than one lakh commuters every day. Several development works have been carried out at the facility under the Smart City Mission.
The terminal was identified for redevelopment in 2024 under the State government’s initiative to develop urban infrastructure through public-private partnership (PPP) projects. The Corporation engaged a private consultant to prepare a detailed feasibility report, and the plan was approved on March 26, 2025. The project was proposed under the Design, Build, Finance, Operate and Transfer (DBFOT) model.
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