CHENNAI: The introduction of electric buses under the Gross Cost Contract (GCC) model has turned out to be an economically beneficial initiative for the debt-ridden Metropolitan Transport Corporation (MTC). However, a section of workers’ unions has alleged that the move marks a gradual attempt to privatise the state transport corporations.
According to official sources, MTC incurs an average operational cost of Rs 125 per km for running its diesel buses, while payments to private operators of electric buses are fixed at Rs 77.06 per km for non-AC buses and Rs 80.84 per km for AC buses. In addition to this, the corporation pays Rs 4-Rs 5 per km towards the salary of conductors. As a result, MTC’s operational expenses per bus have reduced by about 30%-35% when compared to conventional diesel buses.
T Prabhushankar, managing director of MTC, said that the average per-kilometre payment made to the operator covers the cost of bus procurement, maintenance, and the driver’s salary.
“The procurement cost of a diesel bus alone is around Rs 40-Rs 50 lakh, which is funded by the state government, and not included in the operational cost,” he said.
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PrabhushankaR added that the introduction of electric buses has helped ease overcrowding on several routes. “Due to a shortage of conductors, we have temporarily outsourced conductor services at a fixed rate of Rs 4-Rs 5 per km. Recruitment is a lengthy process, and currently, even regular diesel buses are being manned by contract conductors,” he said.
255 electric buses are in service out of the 625 planned under the Chennai Sustainable Urban Services Program, supported by the World Bank and the Asian Infrastructure Investment Bank, to reduce environmental pollution.
Under the GCC model, the private operator handles the operation and maintenance of the buses, while MTC collects the ticket revenue and pays the operator a fixed rate per kilometre. Each bus is required to operate at least 200 km per day to qualify for payment.
However, R Kamala Kannan, secretary of Anna Thozhir Sanga Peravai, claimed that the GCC model has resulted in significant loss for MTC despite the partial privatisation. “The average daily ticket collection per bus is around Rs 7,000, whereas MTC pays Rs 15,600 for non-AC buses and Rs 16,500 for AC buses to the operator-resulting in an estimated daily loss of about Rs 8,000 to Rs 9,000 per bus,” he alleged. Kannan further opposed the MTC’s decision to deploy contract staff for ticket collection instead of appointing its own employees as it had been planned initially.
As per official data, 120 electric buses operate from the Vyasarpadi depot, while 135 are operated from the Perumbakkam depot. The remaining 370 buses, earmarked for Tondiarpet, Central, and Poonamallee depots, are currently being manufactured, the data stated.
