CHENNAI: With the plan to procure 500 low-floor electric buses for the city reaching its final stage, the MTC is preparing to equip the diesel bus depots at Perumbakkam, Chromepet, Tondiarpet, Semmencherry, and KK Nagar to carry out maintenance activities of e-buses.
Diesel buses of these places will be relocated to newly-developed depots. The MTC is also finalising tenders to determine the per-kilometre price to be paid to e-bus operators under the Gross Cost Contract (GCC) model.
In the GCC model, service providers own, operate, and maintain e-buses for a fixed rate and contract duration. The MTC will set the bus routes and collect fares, while the service provider will receive a predetermined fee per kilometre.
According to official sources, the procurement of 500 low-floor e-buses, including 100 AC and 400 non-AC ones, is in an advanced stage, with tenders expected to be finalised by September end.
The average cost of an AC e-bus is estimated at Rs 2 crore, while a non-AC bus costs between Rs 1.85 crore and Rs 1.9 crore. The total project cost is estimated at Rs 960 crore, with 70% funded by the World Bank and the rest borne by the state government.
“The per-kilometre price to be paid to the operators by the MTC has not yet been finalised, though we have received quotes from a few companies,” said an MTC official.
The official added that, according to the agreement, the MTC will provide space for setting up charging infrastructure and maintaining the e-buses for a fee.
“Creating additional capacity for diesel buses doesn’t require building new depots; instead, we will expand the existing ones by utilising the available space. Tenders have been floated for this work,” the official noted.
The proposed 500 vehicles are part of the 1,000 low-floor e-buses funded by the World Bank, with an additional 500 buses to be procured through loans from KfW, a German-based bank.
“If everything proceeds as planned, the new vehicles will be on roads by February or March 2025. The tender norms have been set according to guidelines used for World Bank-funded projects in other states,” said an official.
A tripartite agreement between the World Bank, MTC, and the transport department has been signed to this effect, with depot maintenance to be handed over to the bus operator.