PUNBUS to raise loan without state government’s guarantee to buy hundreds of buses
Kanwar Inder Singh/ royalpatiala.in News/ May 4,2026
Punjab State Bus Stand Managment Co.Ltd. (PUNBUS) is going to raise a loan of Rs 136 Cr. (Tentative) for 5 years to purchase 387 ordinary buses. The amount of loan may be increased or decreased depending upon the number of buses purchased.
PUNBUS is going to procure loan without state government guarantee whereas PUNBUS is a wholly owned Punjab Government Company, all Directors on the Board and Shareholders are Government Nominees.
As per available information, the state government transport department plans to procure “Lien on Escrow account* to be maintaining with the bank for the sale of tickets from buses financed by bank.”
As per the plan the repayment of the loan will be done in 57 months as 3 months are for moratorium period.
In an interesting terms & conditions, insurance of buses is exempted to PUNBUS by Govt. of Punjab being a state transport undertaking.
The banks or other financial organizations have been asked to submit the quotations in a sealed envelope on or before 13.05.2026 (Due Date) till working hours only. Quotations submitted through online modes will not be accepted. Quotations will be opened on 14.05.2028 in the presence of committee members and representatives of the banks in the office of MD, PUNBUS.
PUNBUS has 20 bus stands under its control. At Present PUNBUS is Operating Bus Services to Inter State and within Punjab Covering 4 Lakh (Approximate) Kilometers.
Lien on Escrow Account
*A lien on an escrow account in this context means the bank has a legal right or claim over the money deposited in that account.
An escrow account will be opened where all ticket sale revenue from the buses (financed by the bank) is deposited. The money in the account cannot be freely withdrawn or used by the bus operator. The bank has control or priority access to those funds. The funds may be used to repay the loan or meet agreed financial obligations first. The bank is ensuring that the income from ticket sales is secured and used to recover its loan before anything else.
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