VIJAYAWADA: The State government has categorically ruled out any move to privatise APSRTC, with Special Chief Secretary (Transport) MT Krishna Babu asserting that all depots and lands will remain under corporation ownership.
He clarified that private operators are only allowed temporary use of garage space for e-bus maintenance and charging, strictly under national guidelines, and must vacate once contracts end.
Krishna Babu explained that APSRTC’s 10,661 buses will be converted into electric vehicles by 2029 under the Sustainable Electric Mobility Policy (SEMP) 4.0. Chief Minister N Chandrababu Naidu has directed procurement of fully air-conditioned e-buses across all categories, including rural Palle Velugu services, to raise public transport standards.
He defended the Gross Cost Contract (wet lease) model as a national framework necessitated by high capital costs of Rs 1.5 crore per bus and battery ageing issues.
Under the PM e-Bus Sewa Scheme, 11 AP cities will receive 1,050 e-buses, with national bidding finalised for 750 through CESL and tenders underway for 300 more in Tirumala.
The Centre has sanctioned Rs 145.39 crore for civil and electrical infrastructure and extended operational subsidies worth Rs 1,774 crore. Parallel procurement of 1,450 e-buses under GCC, 500 CNG buses under CAPEX, and 903 standard buses has also been cleared.
Addressing union concerns, Krishna Babu assured that no employee will be retrenched, with the state continuing to spend Rs 4,200 crore annually on salaries and benefits. APSRTC will pioneer a “Dry Lease” model, where manufacturers handle battery overhauls but driving and mechanical duties remain with APSRTC staff. The first 750 e-buses will be rolled out across 12 depots in 11 cities, with immediate redeployment of conductors, drivers, and mechanics once facilities are commissioned.
He noted that welfare schemes like Sree Shakthi (free travel for women) and Divyang Shakthi will continue unchanged.
“Transparency, sustainability and workforce protection are the guiding principles of this transition,” Krishna Babu said, urging staff and the public to trust only official notifications and prepare for a modernised transport system.