BMTC hopes to get third-time lucky with e-bus tender

The Bangalore Metropolitan Transport Corporation (BMTC) has launched its third attempt to lease 300 electric buses under the FAME scheme, nearly three years after the funds were sanctioned by the Centre.

The transport agency hopes to get maximum benefit from the momentum gained by the efforts to procure 90 e-buses under a state government scheme.

BMTC officials have been working for the last six months to ensure that the third tender is a success. As many as six meetings were held with all the major bidders to get their inputs for a healthy bidding process.

As a result, the BMTC has made several modifications to the conditions of the tender, easing several rules and making changes that benefit both the corporation and the companies.

The new tender for running 12-metre long electric buses, all of them non-air-conditioned, sets a deadline of 12 months for the successful bidder to deliver the vehicles once the letter of award is signed. The entire tender process is, however, expected to take at least three months though officials have set a December 1 deadline for opening the financial bids.

The 300 e-buses will be run under the Gross Cost Model and the BMTC will pay the bus provider a fee based on the ‘annual assured kilometre’ model. The corporation has to ensure the average bus kilometres scheduled across all buses in a continuous period of 10 calendar months, commencing from the Commercial Operation Date of the respective Buses, will be no less than 63,000.

A bus has to run for a minimum distance of 180 km on a single charge to qualify in the technical bid. The previous tender had put the minimum distance at 220 km. The corporation has removed the provision from the previous tender that allowed intermittent charging to ensure better utilisation of operation hours.

Two previous tenders have been cancelled: the first due to a decision made by then transport minister D C Thammanna and the second due to costly bids.

Sources said efforts had been made to ensure that more bidders, especially those from the public sector such as the National Thermal Power Corporation, will take part in the process and make the bidding competitive.

Officials are also in touch with the seven major players in the market over the last few months due to a bidding for another tender to lease 90 e-buses under a Smart City project.