The Tamil Nadu Government is likely to include procuring CNG-powered buses in its future fleet expansion plans, as these vehicles present a promising alternative that could play a significant role in the government’s efforts to establish a more sustainable and cost-effective transportation network.
This consideration follows the success of pilot programmes conducted across various divisions of Tamil Nadu State Transport Undertakings, which have shown that operating CNG buses is more cost-effective compared to traditional diesel-powered buses. The pilots revealed notable savings in fuel costs, making CNG buses an appealing option for reducing operational expenses and boosting the overall efficiency of the state’s public transportation system.
Tamil Nadu has eight State Transport Undertakings (STUs), including the State Express Transport Corporation (SETC), which manages inter-State transport. Over the past three months, the other seven bus corporations have each been running two CNG buses on a pilot basis.
A clear advantage
“The buses currently operating State-wide have all been retrofitted with CNG kits. These buses are performing well, and there’s a clear advantage when comparing CNG to high-speed diesel (HSD). Specifically, CNG buses offer better mileage and lower costs per km, which benefits the STUs, though this gain varies across different STUs,” Alby John Varghese, Managing Director of MTC (Metropolitan Transport Corporation), told businessline.
For example, two CNG buses operated under the Tirunelveli Division achieved the highest average savings of ₹5.25 per km (based on a gross run of 2,930 km as of September 3, 2024) compared to diesel buses. The cost of operating a diesel bus in this division was ₹17.97 per km, while the cost for a CNG bus was ₹12.72 per km.
Similarly, the MTC has achieved a savings of ₹1.50 per km on CNG fuel, while the Villupuram, Coimbatore, Salem, Madurai, and Kumbakonam divisions achieved savings of ₹3.28, ₹2.95, ₹4.74, ₹4.24, and ₹4.99 per km, respectively.
“Our initial analysis shows that CNG is definitely cost-competitive in terms of procurement. While retrofitting may not deliver full efficiency compared to OEM-made CNG buses, the experiment has shown that even retrofitted buses are cost-competitive,” Varghese added.
However, the State government has not yet finalised any plans to include CNG buses in this year’s new bus procurement programme.
“As of now, no concrete decision has been made regarding CNG bus procurement. We’re considering CNG bus procurement in next year’s plans, but nothing is confirmed yet,” Varghese said.
E-bus tenders
Providing an update on the e-bus procurement plans, he mentioned that a tender for 500 low-floor electric buses (comprising 400 non-AC and 100 AC buses) under the Gross Cost Contract (GCC) model is currently in progress. MTC has received bids from Olectra Greentech and Switch Mobility, and these are under evaluation.
“We expect to award the tender in about a month. The winning bidder will operate the buses for 12 years, handling maintenance and providing drivers,” he explained.
Varghese also noted that limited participation in the tender by original equipment manufacturers (OEMs) was due to some pushback from bus makers. Since there is no sale of the vehicle under this model, the buses will remain on the company’s books, which some companies find less favourable. However, he expressed confidence that these issues would stabilise going forward.