Telangana's Electric Bus Retrofit Plan Ignites Controversy Over Costs and Safety
In a bold move to electrify public transport, the Telangana State Road Transport Corporation (TGSRTC) has come under intense scrutiny for its decision to convert 240 diesel buses into electric vehicles. This initiative has triggered a sharp debate among stakeholders, raising critical questions about financial prudence, operational safety, and long-term sustainability.
Tendering Process and Allocation Strategy Draws Criticism
The controversy primarily centers on the tendering process adopted by RTC. Only two companies qualified technically for the project, and instead of opting for a re-tender to attract more bidders, RTC chose to proceed with the available firms. Departing from the standard practice of awarding the full contract to the lowest bidder (L1), RTC split the order—allocating 200 buses to L1 and 40 to the second lowest bidder (L2). Officials defended this unconventional move by citing the need to avoid dependence on a single supplier and prevent monopoly in the market.
RTC managing director Y Nagi Reddy emphasized that the split allocation was strategically aimed at fostering competition and ensuring reliability. According to RTC estimates, the per-kilometre operational cost for these retrofitted buses stands at approximately Rs 24, with an anticipated annual benefit of around Rs 2 lakh per bus.
Financial Implications and Cost Concerns
The selected firms, based in Hyderabad and Pune, will supply electric kits and undertake maintenance responsibilities. Each conversion kit is priced between Rs 65-70 lakh, with RTC planning to pay this amount over seven years in instalments. When interest is factored in, the total cost per bus is expected to escalate to nearly Rs 1.5 crore—a figure that has raised significant eyebrows among critics and union leaders.
Union representatives argue that this substantial investment could alternatively fund over 400 new diesel buses, each costing between Rs 34-38 lakh. Moreover, a brand-new electric bus typically costs around Rs 1.3 crore, which could potentially drop to nearly Rs 1 crore with central government subsidies and support. They contend that new electric buses might deliver superior annual returns and better appeal to commuters.
Safety and Structural Risks of Retrofit Process
The retrofit process involves removing the existing diesel engine and fuel tank, then installing batteries and electric systems. This modification adds over 2,000 kg of extra weight to each bus. RTC union leaders have flagged serious concerns about whether the ageing bus chassis can withstand this additional load over time, warning of potential structural stress and safety hazards.
M Thomas Reddy, leader of the RTC joint action committee, expressed apprehensions, stating, "Since the bus body remains old even after conversion, commuters may not find these buses as appealing as new ones. There are genuine worries about durability and passenger safety given the added weight on older frames."
Revenue Potential and Comparative Analysis
Internal studies conducted by RTC suggest that new buses could generate up to Rs 20 more per kilometre compared to retrofitted ones. This translates to an additional daily income of Rs 5,000-6,000 per bus. Over the seven-year payment period, this could amount to approximately Rs 1.26 crore in extra revenue—a compelling argument for investing in new vehicles rather than retrofitting old ones.
As Telangana pushes forward with its green mobility ambitions, the electric bus conversion project remains a contentious issue. Balancing environmental goals with economic feasibility and passenger safety will be crucial for RTC as it navigates this complex transition. The outcome of this debate could set a precedent for other states considering similar public transport electrification strategies.
