Contents
MSRTC Electric Bus Deal Could Cost State Rs 11,000 Crore
• Financial Scandal Uncovered in MSRTC’s Electric Bus Contract
• Massive Loss Looms for Maharashtra Over Inflated MSRTC Contract
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Sprouts News Exclusive
Contact: +91 9322755098
In a shocking revelation, Sprouts News Special Investigation Team has uncovered a massive financial discrepancy involving the Maharashtra State Road Transport Corporation (MSRTC) and its recent work order for the procurement, operation, and maintenance (O&M) of 5,150 electric buses. The contract, awarded to a consortium of Olectra Greentech Limited and Evey Trans Private Limited, subsidiaries of Megha Engineering and Infrastructures Limited (MEIL), is expected to cause a financial loss exceeding Rs 11,000 crore to the state government.
The issue came to light following a similar case in the Nagpur Municipal Corporation (NMC), where a substantial financial loss was averted. In that case, NMC had initially planned to award a contract for 250 electric buses at an inflated rate of Rs 78 per kilometer. However, objections were raised, and a re-tendering process saved NMC Rs 275.5 crore. This prompted further investigation by the Sprouts News Special Investigation Team, which identified alarming discrepancies in the MSRTC contract.
According to the details, MSRTC has awarded the contract at Rs 78 per kilometer, despite the fact that similar projects across India, including those for BEST Mumbai and NMC, typically cost around Rs 65 per kilometer. The Sprouts News Special Investigation Team found that this inflated rate could cause the project to cost Rs 70,378 crore, while the same project could have been completed for Rs 58,648 crore, saving the government an estimated Rs 11,730 crore.
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Further scrutiny by the Sprouts News Special Investigation Team has revealed additional concerns:
• Excessive Minimum Daily Kilometer Guarantee: MSRTC’s contract mandates a payment for 400 kilometers per bus per day, while other tenders, like those from BEST and NMC, only require 200 kilometers.
• Longer O&M Period: MSRTC has stipulated a 12-year O&M period, whereas similar contracts have a 10-year period.
• Lack of Economies of Scale: Given that MSRTC’s contract is for 5,150 buses, the rate should have been lower due to the large fleet size, but this is not the case.
The tender process also raises questions about insufficient competition, as the only other bidder was Olectra Greentech, which is in consortium with Evey Trans, effectively making this a single-bid tender.
In response to the findings, Vikas Thakre, a concerned citizen, wrote to Chief Minister Devendra Fadnavis, requesting an inquiry into the matter. He urged the government to:
1. Conduct a detailed investigation into the irregularities surrounding the contract.
2. Stay the execution of the contract until the inquiry is completed.
3. Cancel the current contract and reissue the tender with fair and transparent terms.
Speaking exclusively to Sprouts News, Chief Minister Devendra Fadnavis has ordered the Chief Secretary of the department to investigate the matter and submit a report on time.
The Sprouts News Special Investigation Team remains committed to uncovering financial discrepancies and holding authorities accountable for mismanagement of public funds. The team will continue to monitor the developments and ensure that the public interest is safeguarded in this case.
