The civic administration of the city had rejected the proposal of Union heavy industry ministry to provide fund for the purchase of 100 electric buses on loan. After the rejection of this, the union government has approved the fund of Rs 14.4 crore for the purchase of 40 e-buses.
The first installment of Rs.3.60 crore has been paid from this fund as a grant. As per the agreement, the heavy industry ministry offered to give Rs.45 lakhs 55 lakh and Rs.35 lakh for the purchase of midi, standard and mini buses. NMC expressed its eagerness to purchase midi buses. These 40 midi buses have been made in Telangana.
This Olectra bus costs Rs.1.49 crore. The Bus Company had also showed its eagerness to operate the buses. For this, the NMC has agreed to pay 66.30 paise per km with the original price of 40 buses. Therefore; it will be possible for Nagpur Municipal Corporation to give this service without any additional investment. In the first phase, 20 electric buses will enter the city in 2021.The payment of Rs.7.20 crore for the second phase will be made after the buses arrive.
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