CHENNAI: The Metropolitan Transport Corporation (MTC) has tightened and modified tender conditions for procurement and operation of 1,520 electric low-floor buses, including 1,000 air-conditioned 12-metre buses, 220 Metro feeder buses, and 300 7-metre buses, with the revised norms seeking to ensure adequate manufacturing capacity while giving bidders more time to deliver the buses.
The three tenders, floated by the previous DMK government ahead of the Assembly elections, have been revised following pre-bid consultations. The changes assume significance as the TVK government has already cancelled the bids for procurement of 500 electric buses for Chennai, Madurai and Coimbatore and decided to modify the procurement to the Gross Cost Contract (GCC) model.
The revised conditions for the three tenders show a mix of tightening and relaxation. While MTC has extended delivery deadlines and eased some technical specifications to facilitate bus supply, it has tightened manufacturing capacity requirements and retained several stringent financial, operational and technical conditions.
For the largest tender, covering 1,000 air-conditioned, 12-metre lowfloor electric buses, MTC has reduced the assured monthly mileage for operators from 6,500 km to 6,000 km per bus.
The buses, along with charging and depot infrastructure, will be procured, operated and maintained under a 12-year GCC contract. Since operators are paid on a per-kilometre basis, the reduction in mileage will lower the minimum assured revenue for concessionaires and also reduce MTC’s longterm payment commitment.
At the same time, MTC has introduced a new technical eligibility condition requiring bidders to demonstrate available manufacturing capacity equivalent to at least 60% of the quantity for which they are bidding, after accounting for existing commitments. The requirement is intended to prevent manufacturers from taking orders across multiple tenders without sufficient production capacity to meet delivery schedules.
Bidders will have to submit a Chartered Accountant-certified statement carrying a Unique Document Identification Number (UDIN), detailing production capacity, existing commitments, and capacity. Original equipment manufacturers will also have to furnish a self-certification, with a new appendix added to the tender.
MTC has also deleted provisions relating to overseas manufacturing and supply experience.
The corporation has clarified that reimbursement for damage caused by accidents, vandalism, riots or negligence of MTC staff will be made only after investigation, verification and approval by the depot manager, based on documentary evidence submitted by the operator.
The second tender covers 220 air-conditioned low-floor electric buses for first- and last-mile connectivity to Metro Rail stations. The fleet comprises 70 seven-metre and 150 five-metre buses.
The buses will operate as conductor-less services with onboard fare collection systems on routes identified by the Chennai Unified Metropolitan Transport Authority (CUMTA) and Chennai Metro Rail Ltd (CMRL) within a 5-km primary influence area of Metro stations.
MTC has extended each major delivery milestone by three months. The requirement to supply 50% of the 5-metre buses within three months has been extended to six months. Delivery of all 5-metre buses has been extended from six to nine months, while the deadline for all 7-metre buses has been extended from nine to 12 months. The relaxation follows requests from bidders citing difficulties in manufacturing and supplying buses conforming to the specifications.
One bidder had sought permission to import the first 100 buses from Vietnam as completely built units and manufacture the remaining buses in India, citing limited availability of suitable 5-metre and 7-metre electric bus models. MTC rejected the request and retained the original condition.
Some specifications for the 5-metre buses have, however, been relaxed. Suspension can now be either air or mechanical, while requirements relating to floor height, wheel-area clearance, and ground clearance can be met under applicable CMVR, AIS-052, ARAI certification, or UBS-II standards.
MTC has introduced a separate energy consumption benchmark of 0.6 kWh per km for 5-metre buses. The benchmark for 7-metre buses remains 0.8 kWh per km.
The operator will continue to be responsible for onboard fare collection system, including its supply, installation, operation and maintenance. The system will support NFC, NCMC, QR code, UPI, appbased, and card-based payments, with cash retained as a backup.
The operator will also remain responsible for fare leakage, misuse and fraud involving the fare collection system. Requests to transfer this responsibility to MTC were rejected.
The 7-metre buses will have at least 13 seats, one wheelchair space and a driver, while the 5-metre buses will have 11 seats, one wheelchair space and a driver.
The contract provides for an assured operation of 4,200 km per bus per month. Once all 220 buses are deployed, this translates into 9.24 lakh bus-km a month.
For the third tender covering 300 air-conditioned, 7-metre low-floor electric buses for feeder services, MTC has also extended the delivery schedule by three months at each major milestone.
The original tender required 25% of the awarded buses to be supplied within three months, 75% within six months, and the entire fleet within nine months. The revised schedule provides six months for the first 25%, nine months for 75% and 12 months for the complete fleet.
MTC has also substantially reduced the requirement for driver-training simulators. Instead of one simulator at every depot, operators will now have to provide one simulator for every 100 buses at any three depots. For the 300-bus fleet, this means three simulators.
The number of passenger information display boards has also been reduced from four to three per bus, with displays to be provided inside the bus and at the front and rear. The fare collection system has been expanded to include a provision to validate passengers holding passes. The system will support QR code, UPI, NCMC, appbased, card, and cash payments.
As the buses will operate without conductors, drivers will operate the fare collection equipment and will have to be trained to issue tickets and handle the system. The operator will be responsible for supplying, installing, operating and maintaining fare collection and ITS systems, while also ensuring their compatibility with MTC’s existing systems.
The MTC has rejected requests to reduce the mandatory two service doors to one. It clarified that the front door will be used by passengers, while the middle door will be reserved for wheelchair access and emergencies.
The revised tender provides for reimbursement of certain costs arising from damage to bus components caused by MTC staff negligence, accidents, vandalism, arson, riots or natural calamities, after insurance recovery. Such reimbursement will be subject to investigation, verification, and approval by the depot manager.
The requirement that bidders should have experience in manufacturing and supplying electric buses to urban public transport entities has also been retained.
1,000 12-metre e-buses
Assured monthly mileage: Cut from 6,500 km to 6,000 km per bus
Manufacturing capacity: Bidders must have available capacity equal to at least 60% of the quantity bid for, after existing commitments
Capacity proof: CA-certified statement with UDIN made mandatory
Foreign experience: Provisions allowing overseas manufacturing and supply experience deleted
Damage claims: Reimbursement subject to investigation, verification and depot manager’s approval
50% of 5m buses: Delivery deadline extended from 3 to 6 months
All 5m buses: Deadline extended from 6 to 9 months
All 7m buses: Deadline extended from 9 to 12 months
5m suspension: Air or mechanical suspension permitted
Energy benchmark: 0.6 kWh/km for 5m buses; 0.8 kWh/km retained for 7m buses
CCTV: Reduced from 4 to 3 cameras, but storage increased from 30 to 90 days
25% delivery: Extended from 3 to 6 months
75% delivery: Extended from 6 to 9 months
Full fleet: Extended from 9 to 12 months
Driver simulators: Reduced to 3 for 300 buses, instead of one at every depot
Passenger displays: Reduced from 4 to 3 per bus
CCTV storage: Increased from 30 to 90 days
Fare collection: Provision added for pass validation onboard