The Maharashtra State Road Transport Corporation (MSRTC) is considering canceling a contract for the supply of 5,150 electric buses due to significant delivery delays. Maharashtra Transport Minister Pratap Sarnaik directed officials on Thursday to issue a final notice to the supplier immediately. If a satisfactory response is not received, the process for terminating the contract should begin.
During a review meeting at the Transport Commissioner’s office, Minister Sarnaik expressed dissatisfaction with the supplier’s performance, highlighting that out of 5,150 buses, only 220 have been delivered so far. The contract, awarded on a wet lease basis, aimed to enhance MSRTC’s fleet with eco-friendly buses, but the delay has hampered the corporation’s operational plans.
Apart from that, Minister Sarnaik has also instructed officials to formulate a new comprehensive policy for advertisements on buses and at bus stations. He stressed the need to select advertising agencies capable of generating higher revenues, as the current arrangement yields only ₹22-24 crore annually. The new policy is expected to raise earnings to ₹100 crore.
"To maximize advertising potential," Sarnaik suggested, "advertisement panels should be installed on newly procured buses while ensuring passenger safety." Additionally, older buses will be retrofitted with similar panels, and bus stations will be upgraded to attract more advertisers, the minister said.
Minister Sarnaik also emphasized the necessity of improving sanitation facilities at major bus stations, particularly for women. He proposed that these upgrades be funded through the Corporate Social Responsibility (CSR) initiatives of diesel suppliers to MSRTC. Going forward, diesel procurement tenders will include a provision mandating suppliers to allocate CSR funds for MSRTC’s infrastructure development.
Meanwhile, efforts to expand MSRTC’s fleet continue. This year, 2,640 new buses are scheduled to be added, with 800 already deployed across 100 depots. Minister Sarnaik has directed that all 251 depots receive their share of new buses within the next two months to enhance passenger services. He also highlighted the positive public response to the newly introduced buses and called for the continued acquisition of high-quality vehicles.
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To further enhance security, he instructed officials to equip all buses with GPS tracking and CCTV cameras, ensuring better monitoring and passenger safety.
MSRTC awarded a contract to Olectra Greentech Limited for the supply of 5,150 e-buses on a wet lease, out of which 220 buses are currently in operation.
Evey Trans Pvt Ltd, a sister concern of Olectra Greentech Limited, is responsible for the operation of these buses. Under the wet lease agreement, the bus supplier is responsible for both operations and maintenance.
According to company sources, the supply was delayed due to a delay in battery chassis supply from BYD China. However, now that India-China relations have improved, the supply has resumed. "As per the contract, the company is liable to deliver all 5,150 buses by April 2026, and given the current situation, it is confident of meeting this target" further stated the source.
