Bangalore Metropolitan Transport Corporation Unable To Induct 300 e-Buses Under FAME-II Scheme

The Bangalore Metropolitan Transport Corporation (BMTC) has announced that there is a possibility that it is unlikely to induct 300 electric buses sought under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) II scheme.

Mr Laxman Savadi, the Deputy Chief Minister and the Transport Minister of the State of Karnataka reached out to Mr Prakash Javadekar, the Union Minister of Heavy Industries and Public Enterprises with a request to curtail the 300 electric buses under the FAME-II scheme, and to increase the subsidy amount.

The request follows a bidding from Hyderabad that stands at Rs 90 per kilometer for 300 e-buses. The BMTC says this is higher than its current operational costs of Rs 80 per kilometer for its diesel powered air-conditioned buses.

The buses were to be leased to state transport undertakings wherein manufacturers were to bear capital expenses and maintenance costs. The BMTC says they have already lost a staggering Rs 80 crore in subsidy for 80 electric buses inducted under the FAME-I scheme.

The Transport Corporation said that they received a bid of Rs 37 per kilometer during the FAME-I scheme that allowed for a subsidy of Rs 1 crore per bus for 80 buses.

The Central Government however, reduced the subsidy amount to Rs 50 lakh and increased the number of buses as well. The BMTC now wants the subsidy amount to be increased to Rs 1 crore.

The letter from the Deputy Chief Minister's Office sent to the Union Ministry of Heavy Industries and Public Enterprises read, "BMTC was operating 6,500 diesel buses before the lockdown, which has now reduced to 2,400 because of the Covid-19 pandemic. This is causing financial distress to the corporation."

The BMTC says that they are ready to induct up to 150 e-buses as long as the subsidy is increased to Rs 1 crore. The Corporation said the operation was financially unviable if the amount wasn't increased.

Thoughts About The BMTC Unable To Induct 300 Electric Buses Because Of A Lower Subsidy Amount

Most state owned transport companies are not doing very well financially because of the corruption and the ignorance that is rampant in the companies and among politicians that are involved. The Central Government really needs to address this issue before it gets out of hand.

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Article Published On: Wednesday, July 29, 2020, 17:25 [IST]
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