Copy that Mumbai Model, ( Municipal ) Commissioners

 

 

 

Context :

Examine 'Mumbai Model', learn from it: Supreme Court to Centre on Delhi oxygen crisis  /  MINT – 05 April

Extract :

Ø  The Supreme Court on Wednesday recommended that the Centre should look to Mumbai and take note from the Bombay Municipal Corporation as the civic body had done a good job in managing oxygen supplies.

Ø  "Bombay Municipal Corporation has done some remarkable work and not disrespecting Delhi but we can maybe see what was done by BMC. Maharashtra is also an oxygen supply state," Justice Chandrachud said.

Ø  The top court also asked the Centre to maintain transparency on the ongoing oxygen supply crisis in Delhi and keep citizens informed.

Ø  The Delhi HC had on Tuesday issued a show-cause notice to the government as to why contempt should not be initiated against it for failing to comply with the order on supply of oxygen to the Capital for treating Covid-19 patients.

===================================================

Mumbai: Cash-strapped BMC to shell out Rs 1.6 crore to rent e-cars for 8 years | Mumbai News 

Extract :

Ø  At a time when the BMC is dealing with an acute scarcity of funds and has needed to dip into its reserves, it plans to spend Rs 1.6 crore on renting model new electrical automobiles for its civic leaders. As an alternative of shopping for new e-cars, the BMC has determined to hire these for a interval of eight years.
By renting the autos for eight years, the BMC will find yourself paying round Rs 32 lakh per automobile—greater than double the market worth of around Rs 14 lakh for every car .

 

Ø  Civic officers mentioned the BMC will find itself paying Rs 27,000 to Rs 37,000 per thirty days per automobile.

 

Ø   The BMC is renting the automobiles from Energy Efficiency Services Ltd (EESL)

 

Ø  Raja mentioned he wouldn’t wish to get a brand new electrical car at a time when the BMC is in a nasty monetary state. “Our automobiles are nearly 10 years outdated and sometimes break down however this proposal ought to be deferred. The BMC isn’t in a monetary place to go for fancy automobiles. The BMC has already spent some huge cash on Covid and such fancy electrical automobiles should not be purchased,” Raja mentioned.

 

Ø  RTI activist Anil Galgali too mentioned the BMC should not spend cash on electrical automobiles when it’s dealing with a crunch. “The BMC should not purchase fancy automobiles proper now at double the market worth on hire. Paying double the market worth and taking automobiles on hire doesn’t make sense. There ought to be an austerity drive by BMC leaders,” Galgali mentioned.

===================================================

MY  TAKE  :

Ø  I am presuming that BMC has taken these 5 e-Cars on WET LEASE ( including maintenance + battery re-charge cost + driver’s salary etc., to be borne by EESL )

Ø  Economy Calculations :

LEASE RENT :

#  Rs 1.6 cr ( Rs 160 lakh ) for 8 years = Rs 20 lakh / year ( for 5 cars ) =

    Rs 4 lakh / year / car

 

             OWNERSHIP COST ( if purchased outright instead of leasing ) :

            #   Purchase Price            =   Rs  14 lakh  / car

            #   Interest Cost @ 15 %  =   Rs   2.1 lakh / year

            #   Depreciation @ 10 %   =   Rs   1.4 lakh / year

            #   Maint ( spares ) @ 5 %=   Rs   0.7 lakh / year

            #   Driver’s Salary              =  Rs   3.0 lakh / year 

                                                               ( Rs 25,000/ month incl. benefits )

          ===================================================

                Sub – Total                     =  Rs   7.2 Lakh / year / car   

===================================================

Thank God, BMC decided to WET-LEASE , electric cars and not BUY petrol cars

If these were outright PURCHASED, petrol cars, then petrol itself would have cost another Rs 10 / Km ( @ Rs 100 / Litre and car-mileage at 10 km / litre )

If that PETROL car was to run 2,000 km / month, that would add up to 24,000 km / year

That would add another Rs 2.4 Lakh / year !

WET-LEASING of e-cars must not be on payment of “ lease rent “ on any TIME-PERIOD basis ( eg: a MONTH )

It must be based on ACTUAL KM RUN by each car

If , for whatever reason ( incl. driver absenteeism – spare unavailability – no nearby battery charging station etc ), the car stops , the LEASE-RENT METER also stops !

This will force the party leasing out ( in this case, EESL ), itself  to set up hundreds of Battery Charging Stations ( one every 5 Km ? ), all over the city to ensure that the e-cars never run out of juice !  

 

Dear Hon Supreme Court,

I urge you to “ RECOMMEND “ to Municipal Commissioners all over the country that , besides in case of handling COVID, in case of LEASING of e-Cars too, they follow the MUMBAI MODEL

With regards,

Hemen Parekh  /  hcp@recruitGuru.com  /  07 April 2021