APSRTC have no funds for 50 % as payment in advance for new buses * India
* Andhra Pradesh - Cash-starved RTC to opt for EMI route to buy new buses
APSRTC it is also trying to purchase buses on loan basis, the loan amount being repayable in easy Equated Monthly Instalment's (EMI) as it too is suffering from funds crunch... According to reliable sources, the APSRTC, having 12,000 buses across the state should replace 40 per cent of old buses with new ones. Though, the total requirement for new buses will stand at 5,000, the management decided to purchase 2,000 new buses in this year in addition to hiring 850 buses... However, as the corporation is not in a position to spend such huge amount, RTC officials are holding negotiations with the managements of the bus production companies and are proposing to take buses on the basis of EMI... It is learnt that the officials have moved the proposals to take buses under EMI with manufacturers like Ashok Leyland, Tata, Eicher, Volvo and Scania. While some companies did not agree to EMI payment, others asked the APSRTC to make at least 50 per cent of the payment in advance and the remaining in EMIs... But, the officials of the APSRTC, who are searching alternatives even for payment of wages to the staff, are expressing their unwillingness to 50 per cent upfront as they have no funds for making the payment... While, it would cost from `70 lakh to `One crore for purchasing air conditioned buses like Volvo and Scania, cost of the Super Luxury and Deluxe buses will be at `35 lakh and `32 lakh respectively...
Guntur, AP, India - The New Indian Express, by S Viswanath - 31st January 2016
Labels: funds for buses