CHENNAI: TN government is procuring 1,666 buses from Ashok Leyland which could help replace the aging buses of Tamil Nadu State Transport Undertakings which are over 15 years old. The new buses are being procured at a cost of `371.16 crore for STUs in Villupuram (344), Salem (84), Coimbatore (265), Madurai (350), Tirunelveli (242) and Kumbakonam (367).
These buses will be specially designed to ensure outstanding passenger comfort and will be equipped with advanced iGen6 BS VI technology, featuring a robust 147 kW (197 hp) H-series engine. This engine is expected to enhance safety, comfort and reduce the overall cost of ownership. Currently, STUs have more than 18,000 Ashok Leyland buses operational, comprising over 90% of total fleet.
The fleet strength of State Transport Undertaking is 20,127 including 18,723 scheduled buses and 1,404 spare buses. The State Transport Undertakings have been collectively incurring a loss of over Rs 452 crore a month in 2022-23.
Government has taken steps to replace the aged buses by deploying new buses. The government has entered into agreement with KfW (German Development Bank) to procure 12,000 BS-VI buses and 2,000 electric buses over a span of five years with costs sharing ratio of 80% (KfW) as interest free loan and 20% share by Government of Tamil Nadu.
Diesel buses are to be deployed in seven State Transport Undertakings except SETC. Electric buses are to be deployed in Chennai, Madurai and Coimbatore as replacement of old buses. Soaring diesel prices, wage hikes due to the 14th wage settlement, hike in DA to employees, increase in interest cost for availing additional loans for working capital including salaries, and statutory payments during and post Covid-19 have been affecting STUs.
The government has been supporting STUs by sanctioning funds in the form of share capital assistance, loans, and grants for purchasing new buses, settlement of statutory dues for retired employees, etc. An allocation Rs 8,000 crore was made to the Transport Department in the Budget 2023-24.