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Chandigarh admn’s plan to transition to electric buses deferred
Facing a fund crunch in the wake of the pandemic, the UT administration has stalled the shifting of the CTU bus fleet from diesel to electric for the current financial year at least
The city’s bid to transition from fossil fuel to renewable sources of energy has received the corona jolt.
Facing a fund crunch in the wake of the pandemic, the UT administration has stalled the shifting of the Chandigarh Transport Undertaking (CTU) bus fleet from diesel to electric for the current financial year at least.
The plans, set in motion last year, to buy 40 electric buses for the CTU local fleet has been suspended for the current financial year. The medium sized (9m) battery-operated buses were planned to be procured on the gross cost-contract model.
Confirming the development, Uma Shankar Gupta, director transport, said, “For the time being the project has been deferred. There were financial constraints in view of the pandemic.”
The addition of electric buses to the CTU fleet is a long-term plan for a greater environmentally-friendly public transport system. The transport department plans to phase out ordinary buses after the full cycle is completed.
ALL 400 BUSES TO BE MADE ELECTRIC
As per the plan, all ordinary buses will be replaced with electric buses in time. There are around 400 buses, and nearly half of these are nearing completion of their operational life.
The administration had even floated tenders for the buses. After failing to procure electric buses in its previous two attempts, the administration received two bids in the third tender it had floated in January this year. The new buses were to be made operational by September, but the pandemic hit.
After the Union government refused to finance the buying of 40 electric buses, the department in June last year decided to procure them on the gross cost-contract model. Under the model, the successful bidder has to procure, operate and maintain the buses. All revenue is collected for the administration, and the company is paid on a per kilometre cost basis. The medium-sized (9m) battery-operated buses are to be equipped with air-conditioners and are to be used on local city routes.
QUESTIONS RAISED ON PROJECT’S FINANCIAL VIABILITY
The finance department had raised questions over the financial viability of the project. In response, the transport department had contended that the department’s own revenues and the revenues generated from the project itself would finance the project.
But with only 150 local buses operating from the 400-bus fleet, generating adequate revenue to make the project viable will be difficult. “Due to the pandemic, for nearly three months, all the CTU buses were off road and consequently no revenue was generated. Even now for ensuring social distancing norms, the buses are running on half of their capacity. The CTU is now under a greater financial stress,” said a CTU official, requesting anonymity.
