Overview
- The transport department is preparing to float a fresh tender for 500 electric buses under a Gross Cost Contract, which would have private firms buy, maintain and run the buses under long-term deals.
- Reports disagree on which lender cleared changes to the earlier procurement process with some outlets naming KfW and others naming the World Bank, and officials say formal funder approval is still pending.
- Under the GCC model private concessionaires are expected to provide drivers, maintenance and operations for contracts reported to run about 12 years, with an electric bus unit cost cited at roughly ₹1.4 crore.
- Chief Minister C. Joseph Vijay flagged off 300 newly procured state buses on Thursday, a mixed batch of 164 diesel and 136 CNG vehicles bought for immediate service needs at an estimated cost of Rs 127.21 crore.
- Unions have warned the GCC expansion amounts to gradual privatisation while supporters point to existing savings from electrification—MTC runs more than 600 electric buses and has reported up to 30% lower operating costs—so the key next steps are an amended tender and clear lender sign-off.