E-buses will not lead to privatisation of RTC, says top official

MT Krishna Babu, Special Chief Secretary, Transport and Roads and Buildings, maintains that there is no truth in the reports circulating in certain sections that the inclusion of electric buses in the APSRTC fleet will result in privatization of public transport organisation.

Mr. Krishna Babu said on Sunday that such reports are misleading and far from the truth.

Referring to the PM eBus Sewa scheme launched by the Government of India to promote clean, eco-friendly and sustainable urban public transport across the country, Mr. Krishna Babu said that under this scheme, around 10,000 electric buses are proposed to be introduced in various cities of India.

“Buses under this scheme are being introduced under the Gross Cost Contract (GCC) model and this is not a new policy. APSRTC has already introduced 100 electric buses under the GCC model in 2021 under the Centre’s FAME-II scheme. These buses are currently running successfully on Tirupati-Tirumala, Tirupati-Nellore, Tirupati-Kadapa and other routes.”

Mr. Krishna Babu said that 750 electric buses have now been allocated to Andhra Pradesh under the PM eBus Sewa scheme. However, he informed that the Center has approved 300 more electric buses to operate only on the Tirupati-Tirumala route.

He said that the Center has provided significant financial assistance under this scheme by providing 60% grant to civil infrastructure and 100% grant to electricity infrastructure. The official added that a grant of 145.39 billion rupees has been approved for the creation of charging and maintenance infrastructure facilities for 750 electric buses.

“APSRTC is expected to get incentives of around ₹ 1,774 crore under the scheme as the Center will provide incentives of ₹ 24 per km for every 12-metre bus and ₹ 22 per km for every 9-metre bus,” he explained.

Asserting that the introduction of electric buses will help reduce environmental pollution, fuel expenditure and maintenance costs in the long run, Krishna Babu said that it will also provide better passenger comfort, modern amenities and improved operational efficiency.

He explained that the introduction of electric buses will not negatively affect employees in any way. “The Prime Minister has already made it clear that no employees will be laid off due to the introduction of electric buses or the implementation of the GCC model,” he said, adding that a “Dry Lease Model” could be considered in the future to further protect the interests of employees if necessary.

“The government, through APSRTC, is committed to providing safe, affordable, efficient and environmentally friendly transportation services to the public and fully protecting the interests of its employees,” he said.