Bids Invited for 100 Electric Buses Under Gross-Cost Contract in Maharashtra

The Maharashtra State Road Transport Corporation (MSRTC) has invited bids to select agencies for procurement, operation, and maintenance of 100 electric buses along with allied electrical and civil infrastructure under the gross-cost contract model.

The last date to submit the bids is April 17, 2021. Bids will be opened on April 19.

Bidders will have to submit an amount of ₹14 million (~$190,827) as the earnest money deposit.

The tender has been issued under the Faster Adoption and Manufacturing of (Hybrid) and Electrical Vehicles-II (FAME II) program. FAME India is part of the National Electricity Mobility Mission Plan, which aims at early adoption and market creation for both hybrids and EVs. It covers all vehicles – two-wheelers, three-wheelers, four-wheelers, and buses.


Under the gross-cost contract, the operator is paid a specified amount to provide a specified service for a specified time.

The buses should be 10 meters to 12 meters long. The tender specifies that the demand incentive available under the FAME II program will be ₹5.5 million (~$74,967).

To participate in the bidding process, the original equipment manufacturer (OEM) should be an Indian manufacturer of electric buses with a manufacturing facility in India. Foreign companies are also allowed to participate in the bidding as single bidders or consortium members on the condition that they will get the company registered in India within 45 days from the commercial bid opening.

The bidder should have experience in manufacturing and delivering at least 25 electric buses or 150 diesel or CNG buses over the last three financial years. The lead bidder or any member of the consortium should have executed or undertaken at least an operation of a minimum of 25 electric buses or 150 diesel, CNG, or hybrid buses in any part of India or abroad for at least one year during the last five years.

The operational experience must include planning, managing, and monitoring of buses and operation and maintenance of passenger vehicles. The lead bidder or any member of the consortium or OEM should have homologation certification of at least one mini, midi, or standard Type III model electric bus from India’s designated testing center. The bidder should set up an office and after-sales service facility in the depot space provided by Maharashtra’s authority.

The bidder’s average annual turnover should be more than ₹1.5 billion (~$20.45 million) in the last three financial years. The bidder or all the consortium members should have a positive net worth for the financial year as of the bid due date.

Electric mobility is fast gaining ground in India and the initiative of electrification of public transport in India has just started. As millions of commuters rely on diesel-powered buses, vehicular pollution is a big reason for the push towards electric buses especially in major cities like Delhi and Mumbai.

In September last year, Pune Mahanagar Parivahan Mahamandal issued a tender, inviting bids for 150 electric buses. The scope of work included the supply, operation & maintenance, and development of allied infrastructure on a gross cost contract basis.

Earlier, the Brihan-Mumbai Electric Supply and Transport (BEST) had issued a request for a proposal for the supply and operation of 140 standard AC electric buses and 200 midi AC electric buses under the gross-cost contract model.

According to Mercom’s India Solar Tender Tracker, Maharashtra has so far floated tenders for 532 electric buses in the state.

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