CHENNAI: Chief Minister M K Stalin ordered an allocation of Rs 300 crore on Thursday to the Metropolitan Transport Corporation (MTC) to offset its losses for the 2023-24 financial year. He also directed the release of Rs 111.5 crore for the construction of six depots designated for electric MTC buses.
In light of the Chennai City Partnership Programme (CCP), funded by the World Bank, which includes the procurement of 500 low-floor electric buses for the city, a Public Transport Service Contract (PTSC) was signed between the MTC and the state transport department.
According to the PTSC, the state government will compensate Metropolitan Transport Corporation for the difference between expenses and earnings based on key performance indicators.
Furthermore, Rs 111.5 crore has been allocated for the development of six electric bus depots at Perambur II, Tondairpet I, Vysarpadi, Poonamallee, KK Nagar, and Perumbakkam I.
To facilitate the transition from diesel buses at these locations, five new diesel depots are proposed to be constructed at KK Nagar II, Perumbakkam II, Chrompet III, Semmencheri, and Tondiarpet II, according to an official statement.