CHENNAI: With the Metropolitan Transport Corporation (MTC) taking measures to add 1,000 more air-conditioned electric buses during the present year, the state government has allocated Rs 500 Crore to upgrade the bus depots to make them e-bus friendly.
"The Government recognises the need for modernisation of the fleet of the State Transport Undertakings of Tamil Nadu. With this objective, the government will operate electric buses under the Gross Cost Contract model. During the current financial year, 1,000 new air-conditioned electric buses will be procured for the Chennai Metropolitan Transport Corporation," the revised budget announcement said.
A sum of Rs 500 crore has been allocated in the Revised Budget Estimates to provide electrical and mechanical fixtures for these buses at the bus depots, the budget announcement added.
Meanwhile, the government has allocated Rs 7,675 crore as subsidy to the State Transport Undertakings, Rs 2,650 crore as performance gap funding, and Rs 1,005 crore as share capital assistance. In the Revised Budget Estimates, Rs 13,561 crore has been allocated for the Transport Department.