RTC move to introduce 80 e-buses hits a roadblock

With fuel prices reaching an all-time high, the cash-strapped Andhra Pradesh State Road Transport Corporation (RTC) has decided to introduce electric buses to its fleet.
RTC move to introduce 80 e-buses hits a roadblock

VIJAYAWADA: With fuel prices reaching an all-time high, the cash-strapped Andhra Pradesh State Road Transport Corporation (RTC) has decided to introduce electric buses to its fleet. According to sources in the RTC, the Corporation had recently invited tenders to introduce 80 electric buses in the State under FAME-II (Faster Adoption and Manufacturing of Electric Vehicles in India). With only a single firm quoting in the bidding process, officials are in a dilemma whether to take the project forward or call for fresh tenders.

As per the tender notices, payments to the selected operators will be made on the basis of the distance travelled by these buses, as per the contract. At present, the cost of one electric bus is around `2.5 to `3 crore, which is said to be the primary reason for the poor response from bidders.

However, the RTC officials claimed that the Corporation could purchase each electric bus for as less as Rs 1.5 crore if the Central Government provided necessary exemption under the FAME II scheme, to be implemented from April 1 this year to March 31, 2022.

A senior RTC official, on the condition of anonymity, told TNIE that the Corporation had recently operated a battery-enabled bus between Pandit Nehru Bus Station and Gannavaram Airport on an experimental basis for a week with the help of Goldstone Infratech Limited, an e-bus manufacturer. Earlier, it had also suggested the manufacturers to build buses with 12-metre-long bodies, which are slightly larger than RTC’s existing buses that have  8-11-metre-long bodies, he said.

He added the management was contemplating whether to convene a meeting with the firm that quoted in the bidding requeting it to reduce its bidding value or opt for reverse auction method.

Expensive buses   

The cost of one electric bus is around `2.5 to `3 crore, which is said to be the primary reason for the poor response from bidders. However, officials said the RTC could purchase them for as less as `1.5 crore provided that the Centre allowed exemption under the FAME II scheme, to be implemented from April 1

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