Mumbai Metropolitan Regional Development Authority (MMRDA) is likely to sign an agreement with Tata Motors to buy 25 hybrid buses that will ferry people to and from the BKC business district.
“We’ve received the letter of intent and we’re about to sign an agreement which will confirm the order,” Tata Motors’ Executive Director for Commercial Vehicles, Ravindra Pisharody told reporters at the ‘Make in India Week’ here.
He said the contract is likely to be signed in 2-3 days and the pricing details are still being negotiated. In an earlier bid, it had put a price tag of Rs. 2 crore per such bus, he said.
The company had earlier negotiated with authorities in Bengaluru, but the deal failed due to difficulties on the financing front, he said, pointing out that the Central Government gives a subsidy of only 35 per cent.
The MMRDA is able to pull it off because it is taking financial support from both the Centre as well as state governments, he said.
It is likely to employ the buses to ferry people into the BKC (Bandra-Kurla Complex) and back, he said.
Calling electric mobility as a solution for the future, Pisharody said even though the commercial value is not clear, the company has decided to build up to 30 such buses and showcase them across the country.
Pisharody said the budgetary support of Rs. 75 crore for research on electric mobility was “very small” and he hopes that it is increased in the upcoming budget for next fiscal.
He said the company continues to see a good traction on the defence production front and has bid for future infantry combat vehicle recently.