Adhere to revised timetable: Maharashtra Transport Minister Pratap Sarnaik tells consortium supplying e-buses to MSRTC

Indian Express

5 days ago

In a surprising turn of events, Maharashtra Transport Minister and MSRTC Chairman Pratap Sarnaik, who had earlier announced the cancellation of the Rs 10,000-crore electric bus contract with Olectra Greentech and Evey Trans Pvt Ltd, Friday asked the consortium to adhere to a revised supply timetable instead.
At a meeting held with company representatives at the Mantralaya, Sarnaik reviewed the progress of the delayed e-bus deliveries and directed that the supply of the remaining electric buses be carried out as per the new timeline. 'The buses must be delivered according to the revised agreement to ensure passengers receive the facilities promised,' Sarnaik said, striking a conciliatory tone in contrast to his earlier hardline stance.
In July 2023, Maharashtra State Road Transport Corporation (MSRTC) had awarded the wet lease contract for 5,150 electric buses to Olectra and Evey Trans (Under wet leasing, the lessor provides both the vehicle and the crew). The project was seen as a key step in the state transport body's fleet modernisation drive. However, persistent delays in delivery led to MSRTC issuing seven show-cause notices and imposing penalties worth around Rs 4 crore.
In a media briefing after the meeting, Sarnaik confirmed that of the 5,150 buses, just 220 have been delivered so far. These include both 12-metre and 9-metre variants. Despite the poor supply record, the minister did not reiterate his previous announcement regarding the termination of the contract. Instead, he floated the possibility of seeking viability gap funding (VGF) from the state government to offset the high per-kilometre losses being incurred by MSRTC while running these electric buses.
According to officials, MSRTC faces a loss of Rs 12 per kilometre for the 12-metre buses and Rs 16 per kilometre for the 9-metre variants, which could add up to Rs 3,191 crore over the next few years. So far, the transport body has paid Rs 60 crore to the supplier company from revenue generated through electric bus operations, and another Rs 40 crore is in the pipeline.
'The completion of this contract depends on whether the state government agrees to bear the operational losses,' Sarnaik said, adding that he would soon hold a meeting with Chief Minister Devendra Fadnavis and Deputy Chief Ministers Eknath Shinde and Ajit Pawar to take a final decision.
The change in stance has surprised observers, especially given the consortium's poor track record not only with MSRTC but also with Mumbai's BEST undertaking, where similar delays have been reported.
While no fresh deadline has been publicly disclosed, Sarnaik's softened approach signals that the government may be willing to work around the delays – provided financial backing is secured and deliveries are ramped up.