MTC Cancels Tender for 1,000 AC E-Buses, Citing Administrative Reasons
ECONOMY & POLICY

MTC Cancels Tender for 1,000 AC E-Buses, Citing Administrative Reasons

CHENNAI: The Metropolitan Transport Corporation (MTC) has cancelled its tender to procure and operate 1,000 air-conditioned electric buses, citing administrative reasons. A senior transport department official said the cancellation followed a miscommunication and that the order would be revoked.

The development adds to a series of delays affecting MTC’s plans to expand its electric bus fleet. A separate tender for 220 electric buses failed to attract any bids, leaving the corporation without a response from potential operators for that procurement.

The 1,000-bus tender was one of three floated by MTC in February and March. The tenders were issued under the gross cost contract (GCC) model, under which operators are engaged to run the buses while the transport corporation oversees the broader service arrangement.

The second tender covered 220 air-conditioned electric buses, including 150 five-metre microbuses and 70 seven-metre buses. Since no bids were received, the procurement process for these vehicles has also been delayed.

MTC has another tender covering 300 seven-metre air-conditioned electric buses, for which bids are scheduled to be opened on October 16. The outcome of that process will determine whether the corporation can proceed with at least part of its planned electric bus expansion.

The transport department had also cancelled tenders for 500 electric buses intended to operate in other cities a few months ago. Taken together, the cancellations, postponements and lack of bids have slowed the implementation of the state’s plans to procure and operate 1,520 electric buses through the GCC model, despite repeated efforts to advance the tenders.

CHENNAI: The Metropolitan Transport Corporation (MTC) has cancelled its tender to procure and operate 1,000 air-conditioned electric buses, citing administrative reasons. A senior transport department official said the cancellation followed a miscommunication and that the order would be revoked. The development adds to a series of delays affecting MTC’s plans to expand its electric bus fleet. A separate tender for 220 electric buses failed to attract any bids, leaving the corporation without a response from potential operators for that procurement. The 1,000-bus tender was one of three floated by MTC in February and March. The tenders were issued under the gross cost contract (GCC) model, under which operators are engaged to run the buses while the transport corporation oversees the broader service arrangement. The second tender covered 220 air-conditioned electric buses, including 150 five-metre microbuses and 70 seven-metre buses. Since no bids were received, the procurement process for these vehicles has also been delayed. MTC has another tender covering 300 seven-metre air-conditioned electric buses, for which bids are scheduled to be opened on October 16. The outcome of that process will determine whether the corporation can proceed with at least part of its planned electric bus expansion. The transport department had also cancelled tenders for 500 electric buses intended to operate in other cities a few months ago. Taken together, the cancellations, postponements and lack of bids have slowed the implementation of the state’s plans to procure and operate 1,520 electric buses through the GCC model, despite repeated efforts to advance the tenders.

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