BMTC’s electric bus push taking it deeper into losses

Madesh Anekal

BENGALURU: Despite its own opposition to procuring buses on contract, the Bangalore Metropolitan Transport Corporation’s (BMTC) move to induct hundreds of electric buses, albeit with the aim of reducing pollution, has raised several questions.

In the first phase, the corporation hired 90 electric buses on contract for which payments are made per kilometre. In the second phase, another 300 buses will be added to the fleet in a month or two. Now, the government has okayed induction of 830 more electric buses for which a contract has been signed with Tata Motors under a centrally-sponsored scheme.

Interestingly, the BMTC had written to the government earlier that with the Rs 50 lakh subsidy from the Centre and the state’s share of Rs 33 lakh, the transport utility can itself buy the buses and run them instead of taking them on contract.

BMTC’s Mounting Losses

Rate per km – Rs 51.60
Minimum distance in a day per bus – 180
Daily running cost per e-bus – Rs 9,288
Daily earnings per e-bus – Rs 5,868
Daily loss per e-bus – Rs 3,420
Daily loss per km – Rs 19

The BMTC has entered into a contract with NTPC Vidyut Vyapar Nigam Ltd, a subsidiary of NTPC, for running the 90 electric buses. Going by the terms of the agreement for running these buses, the transport utility is already reeling under losses. Induction of hundreds of more buses on contract will only sink the BMTC further.

After the corporation suffered setbacks by inducting Tata Marcopolo and Volvo buses, it was expected that the utility will wisen up to the losses. Sadlly, that does not seem to be the case, given the huge burden of inductng the electric buses.