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

Christin Mathew Philip / TNN / Updated: Feb 15, 2023, 05:52 IST

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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.

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

The Centre recently allocated 1,500 12m non-AC e-buses to BMTC under the 'Grand Challenge' plan (lease model)

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.

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While RTCs in Delhi and Mumbai are aggressively inducting e-buses, not a single AC e-bus has been added to BMTC’s fleet. Besides, over 300 Volvo buses idle at depots due to soaring diesel prices. This, despite a huge shortage of buses, especially during peak hours. After losing Rs 75-crore FAME-I subsidy for 80 e-buses, BMTC stands to lose 579 e-buses unless the state government intervenes. Under lease, these buses can reduce the STU’s operational cost and temporarily address the issue of driver shortage. The government and service provider must quickly arrive at a workable solution.

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.

About the Author

Christin Mathew Philip

Christin Mathew Philip is a Principal Correspondent with The Times of India, Bengaluru. He writes on urban mobility and traffic issues. He is the winner of Ramnath Goenka Excellence in Journalism award (2015) for his reporting on civic issues in Chennai. He worked in TOI Chennai (2011-2016) before moving to The New Indian Express, Bengaluru in 2016.

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