TN govt nixes tender for 500 electric buses

MADURAI: The TVK-led Tamil Nadu govt has cancelled a tender floated by the previous DMK regime to procure 500 electric buses with funding from German development bank KfW.After the funding bank approved the contract cancellation on June 18, the govt has sought KfW's approval to shift to the 'gross cost contract' model, under which successful bidders (private operators) buy, operate and maintain buses, while the govt pays a fixed per-kilometer fee.Last week, the govt cancelled works worth 246 crore under the Hindu religious and charitable endowments (HR&CE) department.A senior transport official told TOI the govt found the tenders didn't make financial sense. "The transport corporations are not in a financial position to buy e-buses, appoint conductors and bear the maintenance cost. We wrote to KfW last week, seeking approval for the GCC model, and are awaiting its response," he said.The official said the GCC model was followed by most metropolitan cities in India and by Chennai Metropolitan Transport Corporation (MTC) for procuring 625 electric buses using World Bank funds under the Chennai Sustainable Urban Services Programme in 2025-26.