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Indian Express
7 days ago
- Business
- Indian Express
Adhere to revised timetable: Maharashtra Transport Minister Pratap Sarnaik tells consortium supplying e-buses to MSRTC
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.
Hindustan Times
27-05-2025
- Automotive
- Hindustan Times
Revoke 5,510 e-buses contract: Min
MUMBAI: State transport minister Pratap Sarnaik directed officials of the Maharashtra State Road Transport Corporation (MSRTC) to cancel the contract for procuring 5510 electric vehicles (EV) on lease from Evey Trans Pvt Ltd, a sister company of Olectra Geentech Ltd, if the company fails to deliver around 1000 EV buses by mid-July, as promised earlier. Sarnaik said this on Monday in a meeting with MSRTC officials while reviewing the progress of procuring EVs on lease. The minister was irked by the company shifting the deadline for the delivery repeatedly in the past. The company first reneged on its promise to deliver 1000 buses by December 2024, requesting an extension till May 2025 which was further pushed to July 2025. It was also discussed in the meeting that till date MSRTC had received only 240 buses from the company of the 5510 buses. 'Not a single unit of the around 1000 buses have been supplied yet. If they fail in their promise again, cancel the contract for all 5150 buses with the company,' Sarnaik said in the meeting. Sarnaik also asked MSRTC to convert the existing Shivshahi buses gradually into Hirkani buses – the latter falls in the semi-luxury segment. He said that these buses should be painted in green and white colours, so that passengers can easily identify them.
