The Chandigarh Transport Undertaking (CTU) has received bids from three bus manufacturing companies wanting to win contracts for supplying new buses to the corporation.
CTU is planning to buy a total of 98 buses - 49 air-conditioned and 49 non-air-conditioned. According to officials, bids have been received from Tata Motors, Volvo and Ashok Leyland. The financial bids will be opened in the first week of September.
The UT administration has been planning to procure new buses for improving the public transportation system in the city, but the process has been marred by delays.
The administration from the past one year has been trying to purchase 49 AC buses and tenders for the same were floated on four occasions, but could not be processed as the companies - Tata Motors and Ashok Leyland - taking part in the bidding process did not accept the term and conditions laid down by the administration. The administration had incorporated a 10-year annual maintenance contract (AMC) clause, which was the bone of contention between both parties.
As per official figures, CTU has a fleet of more than 500 buses, which ferries more than 50,000 residents every day. For making the public transportation in city more effective, the centre has allocated Rs 131 crore to the administration for the next fiscal year. The funds will be used for replacing 117 buses, which will complete the life span of eight years and acquisition of new 150 buses to augment the fleet of local buses under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme, creation of one new bus terminus and strengthening of public transport by providing last-mile connectivity.