Centre approves Rs 27 crore grant for electric buses in Nashik

The NMC has plans to operate city bus service through private contractors. NASHIK: The Union ministry of heavy industries and public enterprises has informed the Nashik Municipal Corporation (NMC) that a total grant of Rs 27 crore will be provided to the civic body for rolling out electric buses in the city.

A grant of Rs 55 lakh each for procuring 50 electric buses will be given to the NMC under the Faster Adoption and Manufacturing of Hybrid & Electrical Vehicles in India (FAME) scheme.

The ministry has sent a letter to the NMC in this regard. The letter is signed by joint secretary (auto) of the ministry of heavy industries and public enterprises Pravin Agarwal.

“Though the NMC will get the grant, it will have to initiate procurement process in a time-bound manner before November 15 to get benefits of the scheme,” the letter stated.

Moreover, the NMC will have to ensure that every electric bus will run 7.3 lakh km on an average during the entire contract period for operating the buses.

The cost for developing infrastructure including charging equipment, transformer and other civil cost for installation for charging the buses, will have to be incurred by operator or Original Equipment Manufacturer (OEM). However, the cost for setting up electricity connection of requisite power loan at bus depot will be borne by the NMC.

The NMC had submitted an expression of interest to the Central government on July 15. Accordingly, approval to provide 40% of the funds to buy 50 electric buses was given.

Confirming the development, an NMC official said a grant of Rs 27 crore will be given to the NMC on a condition that it will operate the electric buses for the period of 10 years through contractor.

"Although the electric buses are to be procured by the private contractor, the buses would be run for 10 years in the city. Moreover, the grant for procuring buses will also help the NMC to reduce the per km charges from the contractor," the official added.

The NMC has plans to operate city bus service through private contractors. A total of 400 buses — 200 CNG, 150 electric and 50 diesel — will be operational under the city bus service project. The civic body has decided to appoint three operators.