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Tata Motors hikes rates for buses, DTC defers

The Delhi government’s aim to introduce 1,725 new low-floor buses on city roads has run into rough weather. Tata Motors, the supplier of the buses, has quoted an exorbitantly high price for the buses which has forced Delhi Transport Corporation (DTC) to rethink.

A senior transport department officer said, ‘The company has demanded an unimaginably high rate for the low-floor buses which DTC is unable to pay. The irresponsible behaviour of Tata Motors has led to unnecessary delay in procuring the new buses.’

‘The cost of non-air conditioned buses was Rs 50 lakh earlier with the minimum maintenance charge of Rs 3.20 per km till 75,000 km. But three months back Tata revised the rates and sought Rs 76 lakh for non-AC low-floor buses with a minimum maintenance charge of Rs 76 per km. We have procured AC low-floor buses at Rs 60 lakh in the past, but the company has now sought Rs 86 lakh for the same buses with the revised maintenance rate of Rs 86 per km,’ he said.

Interestingly, there are only two main manufacturers of low-floor buses. One is TATA Motors and  other company was Ashok Leyland. But Ashok Leyland no longer provides buses to DTC. This has enabled Tata Motors to increase rates, a source said.
According to a Delhi High Court’s order of 2007, the city must have 11,000 DTC buses but only 5,481 are plying on the roads.
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