BMTC REJECTS HIGHER BID FOR E-BUSES NEW TENDER FLOATED
Context: The BMTC’s plan to induct electric buses has been delayed again as negotiations between cash-strapped BMTC and Hyderabad based Olectra Greentech have failed.
The bus corporation has scrapped the tender to induct 300 electric buses.
KSRTC, the parent organisation, had floated a new tender on behalf of BMTC to induct 300 AC electric buses (12 metre) under phase II of Faster Adoption and Manufacturing of Electric Vehicles (FAME).
The tender will be opened on February 12.
- Olectra the lowest bidder quoted Rs 89.6/km for 300 buses for BMTC.
- In addition, BMTC will have to deploy a conductor which will cost an average Rs 7 per km, which comes to Rs 96.6/km.
- The amount quoted by the firm was higher than the present operational cost of BMTC’s AC diesel buses (Rs 75-80/km).
- It’s not financially feasible to induct e-buses at this rate according to BMTC.
- Earlier, the Centre offered up to Rs 1 crore per bus under FAME-1. It was reduced to Rs 55 lakh under FAME-2.
- The state-run bus corporations are planning to induct 400 electric buses under FAME-2.
- These include 300 buses for BMTC, 50 for KSRTC (inter-city operations) and another 50 for Hubballi-Dharwad BRTS (NWKRTC).
- The lowest bids: Rs 89.6/km for BMTC, Rs 68.4/km (KSRTC 12m AC bus) and NWKRTC (Rs 66.9/km (9m), Rs 90.6 (12m) and 91.8 (12m, AC).
- KSRTC, for instance, spends an average of Rs 55/km for AC buses. This will go up to Rs 75.4/km for electric buses.
- In Gujarat, the government recently increased the viability gap funding (VGF) for electric buses under BRTS up to Rs 25 per km from existing Rs 12.5 per km.
- VGF supports projects that are economically justified but not financially viable projects under PPP.
- The Karnataka government has not offered any such subsidy. The STUs are likely to lose the Centre’s subsidy under FAME-2 if these buses are not inducted before February 15.
- BMTC already lost FAME-1 subsidy due to delay in inducting electric buses
FAME INDIA SCHEME
- The National Electric Mobility Mission Plan (NEMMP) 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country.
- As part of the NEMMP 2020, Department of Heavy Industry formulated a Scheme viz. Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme in the year 2015.
- The aim of the scheme was to promote manufacturing of electric and hybrid vehicle technology and to ensure sustainable growth of the same.