The ambitious project of the Bangalore Metropolitan Transport Corporation (BMTC) of plying electric buses by October has hit a road block, with the Department of Transport deciding to procure the buses instead of leasing them.
Transport Minister D.C. Thammanna told The Hindu that it was decided recently to shelve the previous plan of leasing buses from a private operator. Instead, the transport corporation will procure the buses and operate them. The change in policy may delay the project by up to four months.
Mr. Thammanna said, “In the interest of the BMTC, a decision has been taken to directly procure e-buses and not go for leasing of buses from a private party. The central government, under its scheme, will give ₹1.10 crore for each bus for procuring and building the required infrastructure. Earlier, it was decided that buses would be taken on lease from a private operator, which is not beneficial for the BMTC. What is the use of providing providing infrastructure like workshops in prime locations for a third party for 10 years? Once the contract period is over, it may lead to some dispute.”
In February, the BMTC had selected a manufacturer to operate 150 e-buses. In the first phase, there was a plan to operate 40 buses by October. The transport corporation had planned to directly transfer the subsidy amount announced by the central government to the private operator.
In addition to making investment on buses, the operator was asked to build infrastructure and provide the required staff, including driver, mechanical staff and supervisory staff.
The BMTC had received bidding from seven companies and had agreed to pay ₹37.50 per km to the lowest bidder for operating e-buses. The BMTC had decided to select a private operator reasoning that funding and operating e-buses would cause a financial burden on the cash-strapped transport corporation.
With the new decision, the BMTC will have to float a new tender for purchase of e-buses.
The minister said, “While procuring buses, the BMTC will impose riders such as suppliers have to maintain buses for a certain period of time and train our staff.”
