Chandigarh admn finalises firm to run 40 electric buses

The contract has been awarded to Ashok Leyland; admn to start the process for procuring 40 more buses

The public transport in the city will soon go eco-friendly with the UT administration finally hiring the services of a private firm for running the electric buses.

The administration had to defer the project for a while on account of the pandemic. (HT FILE PHOTO)

After a long tendering process, marred by several setbacks including financial difficulties due to the pandemic, the administration has awarded the contract of running 40 electric buses to Ashok Leyland.

The Indian multinational company was one of the three firms to come forward to run the electric buses in the city.

The UT in June 2019 had decided to procure electric buses on a gross cost-contract model, under which the successful bidder procures, operates and maintains the buses. All revenue is collected for the administration, and the company is paid on a per kilometre cost basis. The medium-sized (9-metre) battery-operated buses are to be equipped with air-conditioners and will be used on local city routes.

The administration had to defer the project for a while on account of financial constraints due to the pandemic. But the project was revived in September last year, after the Centre had sanctioned 80 electric buses for the UT under the second phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME India) scheme.

After getting approval from the Centre, the UT administration had started the process for procurement of the buses. Under the scheme, the Centre will provide ₹50-lakh subsidy for each bus to the seller. The buses will be hired for ten years, and the CTU will get ticket sales through the company, which will also maintain the vehicles.

The UT will now start the process for procuring 40 more buses.