Ahmedabad - In a major push to urban transportation facilities in the metropolitan municipalities and A class municipalities, the state government has escalated the grant amount per kilometer for the operation of CNG and e-buses. Under the Mukhyamantri Shahari Bus Parivahan Yojana, 1068 CNG and 382 e-buses are currently in service across 3 metropolitan municipalities and 10 A class municipalities. Chief Minister Bhupendra Patel announced an increase in the operating grant for these bus services, which are being operated on the Public Private Partnership (PPP) model.
Previously, a grant of Rs 12.50 per kilometer was provided for CNG bus operation in metropolitan municipalities. This amount has now been raised to Rs 18 per kilometer. Additionally, the viability gap funding deficit, which was previously capped at 50 percent, has been augmented to 60 percent. A class municipalities operating CNG buses under the PPP model will also see a grant increase from Rs 22 to Rs 25 per kilometer, and the VGF deficit will be covered at 75 percent instead of the maximum of 50 percent.
The metropolitan municipalities where recent e-bus services are working on a PPP model will witness an increment in subsidies, from Rs. 25 to Rs. 30 per kilometer. The amount of loss covered in the operation of these e-bus services will also rise from 50 percent to 60 percent.
For the first time, the government has also decided to provide a subsidy of Rs 40 per kilometer and cover 75 percent of the losses in the municipalities of the A category.
The state government's decision marks a significant milestone in enhancing urban transport services and is seen as a move that could foster a more efficient and environmentally-friendly transportation system. According to the available information, the state government has approved a total of 1759 buses, including 662 E buses and 1097 CNG buses, against the provision of 2864 buses under the Chief Minister's Urban Bus Transport Facility. Of these, 382 E-buses and 1068 CNG buses are already operational.
