Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday, 6 March 2018

Logical to Lease





Business Line ( 03 March ) carries following news :








Highlight :


In the case of outright purchase, the Centre provides 60 per cent subsidy and the rest is provided by the State road transport corporations.

With most of the RTCs under financial stress, they are looking at GCC, where the buses would be operated and maintained by the supplier at a fixed cost per km.

The Bangalore Metropolitan Transport Corporation (BMTC) has finalised Goldstone-BYD, where six others were in fray, for 40 buses, where the corporation will pay 37.5 per km.

Just to compare this with other luxury bus service, it works out to about 50 a km.

 Likewise, TSRTC has also chosen Goldstone for supply of 40 buses in Hyderabad, also under GCC.



The BMTC had invited tenders for 150 e-buses and it expects to get 1 crore as subsidy per bus from the Centre.

A source pointed out that while at 85 lakh, the EVs’ cost compares with some of the luxury diesel buses, their durability has to be tested in tough Indian conditions.

“If these manage to achieve similar reliability and durability, in major metros like Delhi, where there is growing concern about vehicular pollution, the entire fleet may be upgraded to EVs. We believe they are robust and durable as they have far less moving parts,” the source pointed out.

The Ministry of Heavy Industries and Public Enterprises had extended a subsidy of 437 crore to 11 cities under the FAME India for the launch of electric vehicles to encourage the States to invite tenders.

While Tata Motors will supply 190 electric buses, Goldstone, which partnered Chinese major BYD, will provide 290 buses.

It was proposed to offer 40 buses for each city under the pilot project. However, TSRTC in Hyderabad has decided to take 100 buses, Bengaluru is considering 150 buses, and Mumbai is sticking to 40.

While Ahmedabad is in the process of finalising, in the case of Delhi, where the courts have directed it to consider EVs, they are likely to come up with a much larger tender of procuring about 1,000 buses, another source requesting anonymity said.




In the meantime , in Mumbai , BEST Committee member, Ravi Raja said :



“ Financial mismanagement has driven this body to the current state. BEST immediately needs to buy over 1,000 new buses . But unfortunately , it does not have money to pay the salaries to its staffers “



A report in Hindustan Times ( 04 March ) reads :



The BEST had proposed wet leasing of buses in which the contractor will take care of driver, fuel and maintenance of buses



It was expected to bring savings of Rs 700 – 800 crore, but BEST panel had rejected the proposal earlier



It later on sanctioned most of the reform proposals including wet leasing of more than 450 buses






How much can EESL save if , instead of “ buying “ those 10,000 Electric cars , it were to “ lease “ out the same ?



Here are my calculations :


------------------------------------------------------

EESL : Lease cars , do not Buy !  [ 16  Aug  2017  ]

--------------------------------------------------------

To Buy or not to Buy ?  [  11  Oct  2017  ]

https://myblogepage.blogspot.com/2017/10/to-buy-or-not-to-buy.html


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Of course , it is a different matter that :

 

#   Only some 300 / 500 Electric cars have been delivered by TATA Motors so far


#   The order for setting up of 4,000 EV battery charging stations is not finalized


#   Only  2 / 3 Charging Stations have come up in NCR in past 3 months

 

07  March  2018

www.hemenparekh.in / blogs








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