Govt To Unveil Rs 18,000 Crore Scheme To Run 10,500 Buses In 108 Cities

Union Govt To Unveil Rs 18,000 Crore Scheme To Run 10,500 Buses In 108 Cities

by Swarajya Staff - Monday, May 30, 2022 05:16 PM IST
Union Govt To Unveil Rs 18,000 Crore Scheme To Run 10,500 Buses In 108 CitiesBEST electric buses (BEST Bus Transport)

The Union government is likely to bring about a new scheme to provide financial assistance to operate about 10,500 buses in 108 cities.

The initiative will run for eight years, and cities with a population of 5 lakh to 40 lakh will qualify to obtain the incentives.

An inter-ministerial panel has given its nod to the Rs 18,000 crore scheme. The Union Ministry of Housing and Urban Affairs will now circulate a proposal regarding the same to get the approval of the Union Cabinet.

Each eligible city can bring 100 buses under the project. However, the Union Finance Ministry believes that this number can be enhanced if a need arises for the same.

The centre will roll out this financial assistance under the operational expenditure (OPEX) model. Accordingly, the nodal ministry will be giving a share of the payment that the cities will pay the private operators to run these buses.

The states will invite bids from private bus operators who will quote the contract price for a fixed period. They will get paid on a per-kilometre basis.

The centre will give 25 per cent of the contractor value for cities having a population between 20 lakhs-40 lakhs. For cities will lesser population, the central government will account for 35 per cent of the value of the contract, reports The Economic Times.

Cities starting the bus service for the first time will obtain an additional 5 per cent of the payment. They will receive a further 2 per cent assistance for choosing CNG buses.

Union Finance Minister Nirmala Sitharaman announced this Rs 18,000 crore scheme in her budget speech on 1st February 2021. She had claimed that the centre would expand the Metro rail network and augment the city bus service to increase the share of public transport in urban areas.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.

Latest Articles

    Artboard 4Created with Sketch.