Bangalore Metropolitan Transport Corporation unlikely to avail Centre's 579 e-bus offer

BENGALURU: The city may be facing severe shortage of buses, but Bangalore Metropolitan Transport Corporation (BMTC) is set to turn down an offer from the Centre to induct 579 e-buses. Reason: Lack of central and state financial subsidies.

The Centre recently allocated 1,500 12m non-AC e-buses to BMTC under the 'Grand Challenge' plan (lease model). While the utility is not able to operate its schedules due to severe shortage of drivers, e-buses under the lease model come with deployment of drivers. BMTC will have to deploy only conductors and pay on a per km basis.


Though the Centre allocated 1,500 e-buses to BMTC last year, the utility issued work orders to only 921. There is no clarity on the remaining 579 e-buses.

BMTC managing director G Satyavathi said: "We had asked both Convergence Energy Services Limited (CESL) and the state government to provide a subsidy for the 579 e-buses. If they provide subsidies, then we will induct those buses."

In the tender floated by the Centre's CESL, Tata Motors, the lowest bidder, has quoted Rs 41 per km (including driver cost) for operation and maintenance of 1,500 non-AC electric buses for Bengaluru for 12 years. This means BMTC needs to deploy only a conductor (salary is around Rs 13 per km). So, the utility's operational cost for e-buses inducted under CESL scheme is only Rs 54 per km. However, BMTC has shown interest in inducting only 921 electric buses so far. At present, BMTC's operational cost for a non-AC diesel bus is Rs 62- Rs 65 per km.

"CESL provided a subsidy of Rs 39 lakh per bus for only 921 buses. For the remaining 579 e-buses, subsidy should have come from the state government, but it refused. We are not in a position to induct 579 e-buses even though the quoted rate (Rs 41 per km) is a good deal," said another BMTC official.

Sources in the know also said BMTC has not sent any budget proposal to the state government for new buses. "We are facing severe driver shortage. So, we have not asked for new buses," said a BMTC official. BMTC is scrapping an average of 400 buses a year. Experts say induction of e-buses is likely to reduce environmental pollution and operational costs, given the soaring diesel prices.