https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

APSRTC Not to Be Privatised, Says MT Krishna Babu; Entire Fleet of 10,661 Buses to Go Electric by 2029

Transport Department Says Depots and Land Will Remain with APSRTC; State Plans to Electrify Entire Fleet by 2029 Without Retrenching Employees
Indian Masterminds Stories

Vijayawada: The Andhra Pradesh government has categorically denied speculation over the privatisation of the Andhra Pradesh State Road Transport Corporation (APSRTC), with Special Chief Secretary (Transport) M.T. Krishna Babu affirming that all depots, garages and land assets will continue to remain under the ownership of the state transport corporation.

Addressing the media at the Secretariat, Krishna Babu clarified that the ongoing induction of electric buses under national schemes and leasing models does not amount to privatisation. He also assured employees that no jobs would be lost during the transition and reiterated the government‘s commitment to strengthening public transport through sustainable mobility initiatives.

No Move to Privatise APSRTC

Responding to concerns raised by employee unions and sections of the public, Krishna Babu said there is no proposal to privatise APSRTC.

He stressed that:

  • All APSRTC depots will remain under the corporation’s ownership.
  • APSRTC land and other assets will not be transferred to private entities.
  • Private firms will only receive temporary access to garage facilities for operational requirements related to electric buses.

According to him, the arrangement is purely operational and complies with the guidelines issued under national electric mobility programmes.

Read also: Andhra Pradesh Transfers 6 IPS Officers; ASPs Posted as OSDs & Additional SPs, Niyojyoti Mishra Gets Markapur Posting

Private Operators to Use Garages Only During Contract Period

Krishna Babu explained that private operators engaged under the electric bus programme will be permitted to use designated garage space solely for:

  • Maintenance of electric buses.
  • Charging infrastructure.
  • Operational servicing during the contract period.

Once their contracts conclude, the operators will be required to vacate the premises, ensuring that the facilities remain under APSRTC’s control.

Entire APSRTC Fleet to Become Electric by 2029

The Special Chief Secretary said the government has drawn up an ambitious roadmap to convert APSRTC’s entire fleet of 10,661 buses into electric vehicles by 2029.

The transition will be implemented under the Sustainable Electric Mobility Policy (SEMP) 4.0.

He added that Chief Minister N. Chandrababu Naidu has directed the Transport Department to procure fully air-conditioned electric buses across all service categories, including the rural Palle Velugu network, with the objective of improving passenger comfort and public transport standards.

Why the Gross Cost Contract Model Was Chosen

Krishna Babu defended the adoption of the Gross Cost Contract (GCC) or wet lease model, stating that it is a nationally accepted framework designed to address the high capital costs associated with electric buses.

He explained that:

  • Each electric bus costs around ₹1.5 crore.
  • Battery performance declines over time and requires specialised maintenance.
  • Leasing models reduce financial risks for transport corporations while ensuring operational efficiency.

Under this model, private operators own and maintain the buses, while APSRTC continues to provide public transport services.

1,050 Electric Buses Under PM e-Bus Sewa Scheme

The Special Chief Secretary announced that 11 cities in Andhra Pradesh will receive 1,050 electric buses under the PM e-Bus Sewa Scheme.

Key developments include:

  • National bidding completed for 750 electric buses through Convergence Energy Services Limited (CESL).
  • Tendering underway for another 300 electric buses to serve Tirumala.

The initiative forms part of the Centre’s nationwide effort to promote sustainable urban mobility.

Centre Sanctions Infrastructure and Operational Support

Krishna Babu said the Government of India has approved substantial financial assistance for the state’s electric mobility programme.

The support includes:

  • ₹145.39 crore for civil and electrical infrastructure.
  • ₹1,774 crore in operational subsidies.

These funds will be utilised to establish charging infrastructure and other facilities necessary for operating the electric bus fleet.

Additional Bus Procurement Cleared

Besides the PM e-Bus Sewa Scheme, the government has approved procurement of:

  • 1,450 electric buses under the Gross Cost Contract (GCC) model.
  • 500 CNG buses under the capital expenditure (CAPEX) model.
  • 903 conventional standard buses to strengthen APSRTC services.

The procurement is aimed at modernising the fleet while maintaining adequate transport services during the transition.

No Employee Will Lose Their Job

Addressing apprehensions among employees, Krishna Babu categorically stated that no APSRTC employee would be retrenched because of the electric bus programme.

He said the state government continues to spend approximately ₹4,200 crore annually on employee salaries and welfare benefits.

The government remains committed to protecting the workforce while implementing transport sector reforms.

APSRTC to Introduce Dry Lease Model

Krishna Babu also announced that APSRTC will introduce an innovative Dry Lease model.

Under this arrangement:

  • Manufacturers will be responsible for battery replacement and major battery overhauls.
  • APSRTC employees will continue handling driving operations.
  • Mechanical maintenance, apart from specialised battery work, will remain with APSRTC staff.

The model is expected to balance technological expertise with workforce protection.

750 E-Buses to Be Deployed Across 12 Depots

The first batch of 750 electric buses will be introduced across 12 depots in 11 cities.

Once the required infrastructure is commissioned, APSRTC plans to immediately redeploy:

  • Drivers.
  • Conductors.
  • Mechanics.

This, officials said, will ensure uninterrupted services while optimally utilising existing staff.

Welfare Schemes to Continue

Krishna Babu clarified that the transition to electric mobility will not affect APSRTC’s social welfare initiatives.

He confirmed that flagship schemes including:

  • Sree Shakthi (free bus travel for women).
  • Divyang Shakthi.

will continue without any changes.

Appeal to Employees and Public

Concluding his address, Krishna Babu urged APSRTC employees and the public not to believe rumours regarding privatisation.

He emphasised that the transformation of APSRTC is being guided by three core principles:

  • Transparency.
  • Sustainability.
  • Workforce protection.

He appealed to stakeholders to rely only on official government notifications and support the corporation’s transition towards a modern, environmentally friendly public transport system.

Read also: Kerala HC Rejects IAS Officer K Biju’s Apology, Seeks Fresh Affidavit in Cashew Corporation Corruption Case


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
IAS Officers Indian Administrative Services IAS logo
Inside LBSNAA: Why IAS Probationers Fail Exams and How It Affects Their Careers
cm hemant
Jharkhand Signs ₹99,639 Crore Investment MoUs to Boost Industry, Technology and Innovation
Maharashtra govt-logo
Maharashtra Transfers 8 IAS Officers; Ruchesh Jayavanshi Appointed MD of Mahatma Phule Backward Classes Devt Corporation
NHPC Kamala Hydro Project
NHPC Signs 40-Year Power Deal with Tripura for 1,720 MW Kamala Hydro Project to Boost Clean Energy Supply
MT Krishna Babu
APSRTC Not to Be Privatised, Says MT Krishna Babu; Entire Fleet of 10,661 Buses to Go Electric by 2029
wcl
Western Coalfields Signs MoU for Bamboo Plantation on 28 Hectares of Reclaimed Mine Land in Maharashtra
vijay-kumar-sinha
Bihar Govt Assures Adequate Fertilizer Supply, Orders Strict Action Against Black Marketing
Bihar Education
Bihar Govt to Revamp Engineering Curriculum in 38 Government Colleges with Industry-Focused Education
ADVERTISEMENT
ADVERTISEMENT
Videos
Pulkit Khare
How Uttar Pradesh Is Preparing Its Youth for the AI Revolution
Haryana Leads India's First AI-Powered Bird Census
Haryana Leads India's First AI-Powered Bird Census
Divyanshu patel
How A Single-Minded Devotion of Divyanshu Patel Transformed Moradabad
ADVERTISEMENT
UPSC Stories
bhoopendra
Bhoopendra Dhakad: Raised in a Farming Family, Educated at IIT, Chosen by UPSC
IIT Kanpur graduate Bhoopendra Dhakad secured UPSC CSE 2025 AIR 494 after four attempts, overcoming setbacks...
ChatGPTImageJul62026at03_08_06P-2
Balancing Job & Dreams: How Jasmeet Kaur Turned Her Father's Dream into Reality with Rank 1 in UK PCS-2024
Jasmeet Kaur secured Rank 1 in the UKPSC-2024 examination after balancing her duties as a District Social...
Rakesh R UPSC IFS 2025
How Tuticorin's Floods Inspired Rakesh R to Join Indian Forest Service 
Discover how UPSC IFS 2025 AIR 85 Rakesh R transformed childhood experiences of Tuticorin floods into...
CSR NEWS
NMDC
NMDC Develops Modern Community Infrastructure in Panna Under CSR Programme for Rural Growth
New Facilities Promote Fitness, Sanitation and Inclusive Public Spaces, Strengthening Sustainable Development...
REC (CSR Initiative)
REC Limited Empowers Women in West Bengal with 600 Sewing Machines Under CSR Initiative
New programme in Bangaon aims to promote self-employment, financial independence, and sustainable livelihoods...
REC
REC Ltd Signs ₹4.22 Crore CSR MoA with IGIAT to Build 100 Smart Classrooms in Assam Government Schools
REC Limited partners with IGIAT to modernise rural education in Lakhimpur and Kaziranga by introducing...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
IAS Officers Indian Administrative Services IAS logo
Inside LBSNAA: Why IAS Probationers Fail Exams and How It Affects Their Careers
cm hemant
Jharkhand Signs ₹99,639 Crore Investment MoUs to Boost Industry, Technology and Innovation
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Pulkit Khare
Haryana Leads India's First AI-Powered Bird Census
Divyanshu patel
ADVERTISEMENT
ADVERTISEMENT