Maharashtra to Convert 5,000 State Transport Diesel-run Buses to LNG

Maharashtra deputy chief minister Devendra Fadnavis had tabled a budget for the financial year 2023-24, as the then finance minister, which proposed the purchase of electric buses and conversion of the 5,000 diesel buses into LNG-run vehicles under “green transport initiatve” in order to tackle air pollution in the state. Following this, an MoU (memorandum of understanding) was inked between MSRTC (Maharashtra State Road Transport Corporation) and M/s. Kings Gas Private Limited Company in the presence of Chief Minister Eknath Shinde in March 2024.

The GR said that Rs 40 crore has been sanctioned for 2024-25, Rs 200 crore for 2025-26, Rs 370 crore for 2026-27 and Rs 360 crore for 2027-28. Thus a total Rs 970 crore has been approved for conversion of 5,000 buses into LNG-run buses. “The MSRTC board of directors resolution of November 22, 2023 fixed the conversion cost at Rs 19.40 lakh per bus," it said.

According to the officials, the government will save around Rs 250 crore over the fuel expenditure if all the buses shifted to the LNG as it will be supplied at a 20 percent cheaper rate compared to diesel.

Speaking with this newspaper, Madhav Kusekar, Vice Chairman and Managing Director of MSRTC, said, “The conversion of diesel buses into LNG will help to bring down the fuel cost significantly. It will also reduce pollution and promote green transport in the state.”

The MSRTC is also in process to induct 5,150 electric buses in its fleet, 70 buses of which have already been commissioned. In July 2023, it had awarded the contract to Olectra Green Tech Limited and Evey Trans Private Limited — subsidiaries of Megha Engineering and Infrastructure Limited (MEIL).

At the present, the MSRTC has a fleet of around 15,700 buses and ferries 60 lakh passengers per day.