Published On : Sat, May 28th, 2022

NMC’s final warning to Hyderabad company over delay in delivery of e-buses

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Nagpur: Enraged over delay in supply of 40 e-buses, Nagpur Municipal Corporation (NMC) dashed off a final warning letter to Hyderabad-based Evey Trans Private Limited even as the civic body contemplated future course of action. The company is caught in a bind as its tie-up with China-based BYD company ran into trouble and hence the supply of chassis got held up, halting the production of buses, according to reports.

According to NMC’s Transport Department Administrative Officer Ravindra Pagey, the Municipal Commissioner and Administrator Radhakrishnan B has taken a serious view of the company’s inability to meet even the revised deadlines. Though the company has given a new date, June 15, to deliver the promised 40 e-buses, the Municipal Commissioner has directed setting a final deadline.

As per information, NMC is not yet ready to terminate the contract as the same would complicate the administrative process. Moreover, the Hyderabad-based company’s order book is filled with 1,700 e-buses. These orders are of other major municipal corporations and hence NMC is awaiting action by other units before taking a final decision on termination of contract.

The 40 e-buses are being procured under Faster Adoption and Manufacturing of Electrical Vehicle (FAME-II) policy of the Union Government. A sum of Rs 18 crore was set aside for these buses that the civic body needed to replace its aging fleet currently running on diesel. About 170 buses are due for scrapping and hence the delay in arrival of electric buses is giving tension to NMC officials as its fleet will get depleted.

Meanwhile, NMC is banking on supply of the first lot of 25 buses from another unit, a Uttar Pradesh based company that has agreed to provide 145 electric buses. The company has been given a contract for running these buses. The remaining buses would be delivered by December, the company officials have communicated to NMC.

The UP company has also a tie-up with another Chinese company but they have a manufacturing unit in the country itself so they would not face problems like the one of Hyderabad company. The company would also set up the depot at Hingna for which NMC is providing the land.