Bengaluru

E-buses: Previous tender was flawed, says Minister

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Minister says operating with a private company was not cost effective in the long run

Transport Minister D.C. Thammanna, who has been vehemently opposing the Bangalore Metropolitan Transport Corporation’s move to operate electric buses through a private company, said that it is not cost effective in the long run and a series of problems in the tender forced the government to scrap it. “There were many flaws in the earlier decision to lease and operate electric buses through a private company. The matter was also discussed at length in a Cabinet meeting, and it was finally decided to shelve the tender process,” he said.

The Minister maintained that under the earlier tender, the BMTC could have lost ₹350 crore in a span of 10 years in addition to directly handing over ₹85 crore of Central subsidy to the private company. “The BMTC had agreed to pay ₹37.50 per km to the operator for running each bus for 200 km per day, but this decision was made without thinking of financial implications. At present, on an average, we operate each bus (diesel run) for 150 km per day. How can an electric bus be operated for 200 km per day within the city? The tender offered to pay even if the operator failed to operate a bus for 200 km a day,” he said. The BMTC had also agreed to bear the cost of electricity and water supply, and provide space at depots free cost to the company when it could generate rental revenue. It is likely to float another tender for direct procurement of e-buses after the Lok Sabha elections.

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Printable version | Jan 29, 2020 11:59:44 PM | https://www.thehindu.com/news/cities/bangalore/e-buses-previous-tender-was-flawed-says-minister/article26518514.ece

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