Gujarat govt increases per km grant, VGF for CNG and EV public buses in towns and cities

Gandhinagar: The government of Gujarat has taken a decision to increase the grant operations of CNG and electric public transport buses in cities and towns.

In Municipal Corporation areas, the grant shall be Rs. 18 per km while in Municipality areas it will be Rs. 22.

The decision has been taken at the level of the Chief Minister in order to boost green and clean urban transportation, a note by the State government stated.

At present 1068 CNG and 382 e-buses are active in operations in the State across 10 municipalities and 3 municipal corporation areas.

The State government was giving Rs. 12.50 per km grant for CNG buses operating in cities. The amount is now increased to Rs. 18. In addition to this, the payment for the viability gap funding losses was for a maximum 50 percent earlier. It has now increased by 10 percent to 60 percent.

In the case of towns, payment for viability gap funding shall be 75 percent now, instead of a maximum upto 50 percent of the loss.

For electric buses in class A municipalities, operating on a public-private partnership basis, the grant shall be Rs. 30 per km instead of Rs. 25. Viability gap funding shall be 60 percent instead of 50 percent.

The state government has under the Mukhyamantri Shaheri Bus Parivahan Suvidha approved 1759 buses including 662 e buses and 1097 CNG against the provision of 2864 buses. Out of the approved buses, 382 e-buses and 1068 CNG buses are in operation at present.