Chennai is set to witness a significant shift towards sustainable public transport as electric buses are expected to begin operation by April 2025. The city’s Metropolitan Transport Corporation (MTC) has awarded the contract to OHM Global Mobility, a subsidiary of Ashok Leyland, under a Gross Cost Contract (GCC), to procure and manage 500 low-floor electric buses. These buses will include both air-conditioned and non-air-conditioned variants.
Transport Minister S.S. Sivashankar announced that MTC will pay Rs 77.16 per kilometre for non-air-conditioned electric buses and Rs 80.86 per kilometre for air-conditioned ones. In comparison, the cost of operating diesel buses currently stands at Rs 116 per kilometre, making electric buses a cost-effective and environmentally friendly alternative.
Several leading companies, including OHM Chennai (a subsidiary of Ashok Leyland and Switch Mobility), EVEY Trans, and Aeroeagle Automobiles, competed for the contract. OHM Chennai secured the deal and will operate electric buses manufactured by Switch Mobility.
Under the 12-year contract, OHM Chennai will be responsible for the procurement, operation, and maintenance of the electric buses. They will also manage the charging infrastructure and depot maintenance, ensuring smooth operation throughout the contract period.
The introduction of electric buses under the GCC model will enable MTC to avoid a significant capital expenditure of Rs 875 crores. Instead of purchasing the buses outright, MTC will benefit from the operational advantages of electric vehicles, including lower maintenance and running costs.