Tamil Nadu’s Metropolitan Transport Corporation (MTC) will receive 625 electric buses starting this July under a World Bank-funded scheme, Transport Minister SS Sivasankar announced in the Assembly on Wednesday. This is part of the state’s broader plan to modernise and expand its public transport system with a total of 11,907 new buses.Responding to a debate on the Transport Department’s demand for grants, the minister said tenders would soon be floated for the purchase of 3,000 new buses, including 746 CNG-powered vehicles aimed at reducing pollution. “Altogether, 8,129 new buses will be added in the coming years,” he said.
Of the 11,907 buses planned, 3,778 have already been inducted, and 3,468 more will be added by March 2026 through funding support from KfW (a German funding agency), the World Bank, the state government, and the Special Area Development Programme.
Providing a detailed breakdown, Sivasankar noted that the government had announced the procurement of 5,000 buses at a cost of ₹2,401 crore from 2022-23 to 2024-25. Of these, 3,210 buses have already joined the fleet.
Under the KfW project, 552 low-floor buses have been procured, and tenders have been floated for an additional 1,614 diesel buses and 500 electric buses.
As part of the World Bank-supported initiative, a total of 1,225 electric buses will be added to MTC’s fleet under a Gross Cost Contract (GCC) model. The first batch of 625 electric buses will roll out in July, with a tender already floated for the remaining 600.
Under the GCC model, private firms will be paid a fixed amount per kilometre to operate and maintain the buses, including deploying drivers. The MTC will manage routes and provide conductors for ticketing.
The Chief Minister has also approved an additional 3,000 buses this year, including 746 CNG models. In total, the state plans to add 9,161 more buses, including 7,661 diesel/CNG buses and 1,500 electric buses under the KfW initiative, to improve connectivity and promote green mobility.