The Chief Minister’s decision entails enhancing grants for the operation of CNG and electric buses within urban transport services provided by Municipal Corporations and ‘A’ Category Municipalities in the state
The subsidy for the CNG bus service in the Municipal Corporation will now be Rs. 18 per kilometre
Municipalities will now be granted Rs. 22 per kilometre
An increase in the operating grant for E-Buses is also part of the initiative
Gandhinagar, 18 August 2023: Chief Minister Shri Bhupendra Patel, committed to a Greener and Cleaner Gujarat, has decided to enhance subsidies for CNG and e-buses in Municipal Corporations and municipalities providing urban transport services within the state.
Prime Minister Shri Narendra Modi’s call for green growth to boost the use of eco-friendly transportation facilities and non-conventional energy has been answered by Gujarat. Under the ‘Mukhyamantri Shahri Bus Parivahan Yojana’ (Chief Minister’s Urban Bus Transport Scheme), the state has already deployed 1068 CNG and 382 E-buses in urban transport services across three municipalities and ten ‘A’ Category municipalities.
Chief Minister Shri Bhupendra Patel has adopted an approach to increase the operating grant for these bus services to Municipal Corporations and Municipalities through Public-Private Partnership (PPP).
As per Chief Minister Shri Bhupendra Patel’s decision, Municipal Corporations will now receive Rs. 18 per kilometre for operating CNG buses, up from the previous amount of Rs. 12.50. Furthermore, the maximum amount available before Viability Gap Funding (VGF), which was 50%, will now be increased to 60%.
Additionally, the CNG bus service is currently operated on a PPP basis in ‘A’ Category municipalities for urban transport services. These municipalities will receive a grant of Rs. 22 per kilometre, and the maximum reduction in Viability Gap Funding (VGF) will be increased from 50% to 75%.
Chief Minister Shri Bhupendra Patel has also initiated e-bus services in Municipal Corporations with the aim of boosting the adoption of electric vehicles in urban transport. Currently operated on a PPP basis, E-bus services in Municipal Corporations will receive an increased grant of Rs. 30 per kilometre, up from Rs. 25. The maximum VGF reduction for e-bus services will be increased from 50% to 60%.
In ‘A’ Category Municipalities, the Chief Minister has decided to provide a grant of up to 75% for E-Bus urban transport services, with a maximum amount of Rs. 40 per kilometre.
It is noteworthy to mention that a total of 1,759 buses, including 662 e-buses and 1,097 CNG buses, have been sanctioned out of the 2,864 buses planned under the ‘Mukhyamantri Shaheri Bus Parivahan Suvidha’ scheme. Currently, 382 e-buses and 1,068 CNG buses are operational.
Source: Information Department, Gujarat