NMC to sign MoU with Centre for 40 e-buses

NAGPUR: Decks have been cleared for the Nagpur Municipal Corporation (NMC) to get central government-funded 40 electric buses.
“The NMC will enter into a memorandum of understanding with the central government’s department of heavy industries and public enterprises for this purpose,” said transport committee chairman Narendra Borkar after a meeting on Tuesday.
According to him, bids were invited for 40 e-buses and M/s EVEY Transport Private Limited was shortlisted for the job.“The company had offered a rate of Rs72.99 per km. However, after discussion between municipal commissioner Tukaram Mundhe and the company, the rate was fixed at Rs66.33 per km,” he said.
Unable to deal with its present financial crisis, the BJP-ruled NMC had declined to accept 100 electric buses being sponsored by the department of heavy industries and public enterprises and instead decided to procure only 40 buses under Phase-II of faster adoption and manufacturing of electric vehicles (FAME).
Currently, the NMC is operating almost 370 buses, including five e-buses, and spends around Rs13 crore per month. Of the Rs13 crore, the civic body generates around Rs6 crore revenue from bus fares, while the gap viability fund is around Rs7 crore. With the induction of 40 e-buses, NMC’s monthly expenditure will increase by almost Rs85 lakh.
A civic body officer said the NMC will not procure the 40 e-buses and explained that one e-bus costs around Rs1.50 crore. The Centre will provide subsidy of Rs45 lakh each while the rest will be borne by the private firm.
It was informed in the transport committee meeting that NMC will have to pay only Rs66. 33 per km. Borkar has also instructed to pay the minimum wages to the employees appointed on these buses.
With the committee’s nod, the NMC will soon sign an MoU with the central government, he said.
With these 40 new buses, the transport system of the corporation will get a fillip. These buses, which are very useful from environment point of view, will not only offer convenient service to the citizens but also help in curbing pollution, said Borkar.