It seems the DMK guys have no clue. The Vijay government has nothing to do with the cancellation.
During the DMK government, over 625 electric buses were procured under the Gross Cost Contract (GCC) model. Under this model, the operator purchases and operates the buses and is paid Rs. 77.16 per km for non-AC electric buses and Rs. 80.86 per km for AC electric buses. The ticket fare is collected by government appointed conductors.
Of the per-kilometre payment, only about Rs 25 to 29 covers operating expenses, while the remaining amount goes towards recovering the investment made in purchasing the buses and the interest on that investment.
To reduce the interest component paid to operators, the DMK government proposed procuring 500 buses by paying the full procurement cost upfront and then handing them over to operators for operation and maintenance. Under this arrangement, the per kilometre payment to operators would have been reduced to around Rs. 26 to 30.
However, the government would have had to pay about Rs. 750 crore upfront, at the rate of Rs. 1.5 crore per bus. Since this amount have to raised through loans, the government concluded that the interest cost on such loans could reduce the savings compared to GCC model.
Therefore, in March, the previous DMK government decided to drop the proposal of paying the procurement cost upfront and opted to continue with the GCC model.
The KfW Bank, which had received the proposal in April, approved it only in June.
As a result, the same 500 buses are now proposed to be procured under the GCC model without any upfront payment by the government.
Kolathur MLA deep thinking for @mkstalin future
Veetlaye evlo naal iruka mudium bore adikatha..
Stalin is More Dangerous of karuna_nainithi nu solltu irunthanga
Thiruchendur Murugan Temple issue , Here's The New Official Update !
Three staff members just got the boot for financial irregularities:
✅ An Ayyappan Iyer BANNED from performing pooja
✅ Two security guards REMOVED for taking money
✅ Two staff suspended for unauthorized mudi kanikkai collection
Integrity matters, especially in a sacred space. 🙏 @RameshOffcl 🔥