AMC approves hiring of 300 EV buses at ₹91 per km for AMTS

The Amdavad Municipal Corporation's (AMC) standing committee has approved a proposal to hire 300 electric buses for the Ahmedabad Municipal Transport Service (AMTS) at a rate of ₹91.08 per kilometre, amid concerns over the mounting financial burden on the civic transport undertaking.

The proposal, approved by the standing committee on Thursday, involves hiring the buses from two private agencies: Adinath Bulk Pvt Ltd and Arham Transport Pvt Ltd.

According to civic officials, the 300 new electric buses are aimed at strengthening the AMTS fleet and improving public transport services in the city.

However, the decision has sparked criticism, with opponents questioning the high per-kilometre operational cost at a time when the AMTS is grappling with heavy losses and mounting debt.

Critics have alleged that the cost approved by the AMC is higher than prevailing market rates for similar services. They also pointed out that the Gujarat State Road Transport Corporation (GSRTC) operates or hires comparable buses at lower rates.

One of the agencies awarded the contract is reportedly linked to the family of Dariapur MLA Kaushik Jain.

The AMTS, once considered the backbone of Ahmedabad's public transport system, has been facing persistent financial challenges in recent years. According to official figures, the transport service's accumulated debt has crossed ₹5,092 crore over the last six years.

Civic records indicate that AMTS has been in debt, with figures as follows: 

- ₹331.60 crore in 2020-21

- ₹341 crore in 2021-22

- ₹371 crore in 2022-23

- ₹401 crore for each of the years 2023-24 and 2024-25. 

By 2025-26, the debt had reached ₹412.36 crore. For the fiscal year 2026-27, the proposed loan assistance is estimated to be ₹600 crore.