INR 27 crore aids for Nashik Electric buses are approved by Centre
Nashik Municipality Corporation (NMC) recieves a total grant of INR 27 crore to roll out electric buses in the city.
The BJP-NDA government plans to reduce pollution through a significant push for electric vehicles in India.
Last year, the Urban Development Ministry launched the Green Urban Transport Scheme (GUTS) to reduce greenhouse gas emissions from public transport vehicles. The ministry proposed a grant of INR 250 billion for the development of public electric vehicles.
Taking the cause forward the Nashik Municipality Corporation (NMC) was recently informed by the Union Ministry for Heavy Industries and Public Enterprises that a total grant of INR 27 crore is being granted to the civic body to roll out electric buses in the city.
In accordance with the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME) scheme, the NMC will receive INR 55 lakh each for the acquisition of 50 electric buses.
In this regard, the Ministry sent a letter to the NMC, which was signed by the joint Secretary (auto) Pravin Agarwal of the Ministry of Heavy Industries and Public enterprises.
“Even if NMC receives a grant, the procurement process will have to be initiated within time to receive the advantages of the plan before 15 November,” stated the letter.
The NMC will have to ensure that, over the entire contract period for operating the buses, every electric bus runs at an average of around 7.3 Lakh km.
The operator or original equipment manufacturer (OEM) will have to incur the cost of creating facilities including charges for equipment, the transformer and other civil costs for installation of bus charging.
Nevertheless, the NMC will bear the cost of establishing electricity link for the required energy lending at the bus depot.
On 15 July the NMC submitted to the central government an expression of interest. Consequently, it was approved to provide 40 per cent of funding for the purchase of 50 electric buses.
This INR 27 crore will be given to the NMC provided that electric buses are to be procured and operated by the contractor for ten years. Moreover, the subsidy for bus procuration will also help NMC reduce the contractor’s per km charges.
The NMC plans to operate the city bus service through a private contractor and has decided to appoint three operators, with a total of 400 buses — 200 CNG, 150 electric and 50 diesels — under the city bus service project.
