VIJAYAWADA: The passengers commuting by worn-out APSRTC buses in the city might get a respite soon, as the Corporation has decided to invite Requests for Proposal (RFP) for procuring 1,000 electric buses during the financial year 2019-20 and 2020-21.
Of the total number of buses, 350 will be allocated for Vidyadharapuram and Gannavaram bus depots under the Vijayawada region.
According to the RTC officials, a year ago, the Corporation decided to introduce electric buses in its fleet as the fuel prices had reached an all-time high.
Tenders in this regard were invited from the companies to introduce 80 electric buses in the state, under Faster Adoption and Manufacturing of Electric Vehicles in India (FAME II).
Only one company submitted quotation in the bidding procedure which left the officials in a dilemma whether to take it forward or call for fresh tenders.
As per the tender notices, the selected operators would be paid on contract rate per kilometre, based on the distance travelled by each bus.
Taking the matter on priority basis, RTC vice-chairperson and managing director NV Surendra Babu directed the officials concerned to prepare estimates on the number of buses required for the Corporation. Officials prepared the plan and sought the cooperation of the state government.
In the recent budget allocations, the government allocated 1,572 crore for RTC, out of which Rs 50 crore was meant for purchasing new buses.
Recently, the higher authorities in RTC held a meeting with electric bus manufacturers, technology partners and discussed their induction.
When contacted, RTC executive director (administration), A Koteswara Rao said that a report had been submitted to the Department of Heavy Industries seeking its approval for the procurement of 1,000 electric buses under FAME-II and requested to provide the applicable incentive for the APSRTC.
The same was submitted to the merger committee appointed by the State government for its approval. Rao said that the cost of an electric bus ranges from Rs 1.5-2.5 crore, which results in higher operating cost.
To minimise the loss, the Centre is offering incentive on each bus to the tune of Rs 35-55 lakh.