CHENNAI: With the Metropolitan Transport Corporation (MTC) set to add 1,000 more air-conditioned electric buses this year, the state government has allocated Rs 500 crore to upgrade the bus depots to make them e-bus friendly.
“The government will operate electric buses under the Gross Cost Contract (GCC) 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 to provide electrical and mechanical fixtures for these buses at the bus depots. The MTC has already floated a tender to procure 1,000 AC e-buses under GCC model and the bids are scheduled to be opened on August 19.
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 budget, `13,561 crore has been allocated for the transport department, which is nearly `500 crore more than the `13,062 crore allocated by the previous DMK government in its interim budget.
Rs 7,675 cr as subsidy to transport dept
Government has allocated `7,675 crore as subsidy to the state transport undertakings, `2,650 crore as performance gap funding, and `1,005 crore as share capital assistance