The Tamil Nadu government has initiated efforts to introduce electric buses across the state, with plans to acquire around 1,500 battery-powered buses.
These electric buses will be deployed in Chennai, Madurai, and Coimbatore to replace older vehicles. The government has decided to operate the buses using two different models: the GCC (Gross Cost Contract) model and the CapEx plus AMC (Annual Maintenance Contract) model.
The Metropolitan Transport Corporation (MTC) in Chennai has already progressed with a tender for the procurement, supply, operation, and maintenance of 500 electric buses, along with the necessary electric and civil infrastructure, under the GCC model. “MTC has received bids for this tender, which are currently being processed,” said K Phanindra Reddy, Additional Chief Secretary-Transport, Government of Tamil Nadu, told businessline.
GCC model
In the GCC model, the operator is responsible for procuring the e-buses and setting up the charging infrastructure, which relieves state transport undertakings (STUs) of the need for significant upfront capital investment. The operator is compensated based on the number of km the buses operate. Many STUs across India have adopted this model.
Reddy also mentioned a proposal to issue another tender later this year for the procurement of 500 more electric buses, also under the GCC model.
In addition, the State government plans to procure around 300 e-buses for Chennai under KfW funding, which will follow a different model — CapEx plus AMC. In this model, the government will cover the capital expenditure, while the bus supplier will be responsible for maintenance.
Under the KfW funding, 100 electric buses each are planned for Madurai and Coimbatore, operating under the CapEx plus AMC model rather than the GCC model. The tenders for these cities will be finalised soon, with an expected rollout within six months.
Regarding the introduction of double-decker electric buses, Reddy mentioned that MTC has noted the limited availability of such buses, which could pose a challenge. If introduced, double-decker buses would likely be limited to high-traffic routes, but the final decision rests with MTC.
Across India, STUs are deploying electric buses to reduce emissions. These buses offer benefits such as lower emissions, improved environmental health, and enhanced comfort and convenience for passengers. Traditional buses, on average, produce 1.3 kg of CO2 per km travelled, while electric buses produce none.