Chinese-made e-buses gather dust as KSRTC opts for diesel

Thiruvananthapuram: The start-up firm assigned to manufacture mini e-buses for the Kerala State Road Transport Corporation (KSRTC) is facing a loss of Rs 50 lakh. The project, initiated under the leadership of former Transport Minister Antony Raju and CMD Biju Prabhakar, has hit a roadblock following the appointment of new Transport Minister K B Ganesh Kumar.

The new minister's decision to declare the e-bus initiative unprofitable has left the future of the venture in limbo. As a result, the buses built under a technical collaboration with the Chinese company BYD, are awaiting approval from KSRTC management. 

In November 2023, KSRTC had entered into an agreement to introduce mini e-buses for feeder services, designed to connect residential areas to main roads. The decision, spearheaded by then-Minister Antony Raju and CMD Biju Prabhakar, aimed to modernise the corporation’s fleet without requiring direct investment from KSRTC. The start-up was tasked with manufacturing these buses based on the designs provided, and progress was closely monitored by authorities.

However, the project took an unexpected turn last December when the new Transport Minister, K B Ganesh Kumar, dismissed the feasibility of the e-bus initiative. Citing financial losses experienced by Thiruvananthapuram Corporation’s e-bus fleet, he recommended the purchase of small diesel buses for rural areas instead. This policy shift has created uncertainty around the future of the KSRTC e-bus project.

Start-up left in a financial crisis

The startup that trusted KSRTC and invested money now finds itself in financial difficulty as the state officials are accused of not being ready to assess the vehicles’ performance.

The original plan included converting 1,200 old KSRTC diesel buses into e-vehicles by installing batteries and motors. This conversion process, which was also agreed upon with the start-up, has now been halted, with KSRTC opting to extend the tenure of its ageing diesel buses instead.

Parassala’s proposed vehicle manufacturing unit in question

If the buses were found to be successful in operation, KSRTC had planned to establish a manufacturing unit in Parassala in Thiruvananthapuram. The proposal included a joint venture to set up an e-bus production facility, which would have reduced the cost of each bus significantly. Currently, an e-bus costs around Rs 1 crore, but the idea was that local production could lower these expenses.

The feeder service concept was designed to improve the limitations of the public transport network. By using e-vehicles to transport passengers from remote areas to main roads, KSRTC aimed to offer a more affordable and efficient commuting option.