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The Vadodara Municipal Corporation (VMC) Standing Committee on Friday put on hold a proposal to form a Special Purpose Vehicle (SPV) to carry out a public transport project to popularize electric vehicles (EV).

While the VMC opposition leader, Ami Ravat, on Thursday sought to dismiss the motion, Standing Committee Chairman Dr Hitendra Patel said the department had been asked to submit a “detailed report” after examining other cities’ models.

VMC’s mechanical division, under the National Electricity Bus Program (NEBP), has submitted a proposal to deploy 200 electric buses before Convergence Energy Services Limited (CESL) – a subsidiary of the state-run Energy Efficiency Services Limited – based on the Surat model.

However, the Standing Committee on Friday returned the proposal to the administration saying a “detailed study” is needed to examine other cities’ electric vehicle public transportation models as well. When contacted, Patel said, “We have put the proposal on hold as the management has to prepare a detailed report after studying the models of Ahmedabad and Surat where EVs have already been deployed… All over India, different cities have different guidelines so it is important to study better.” practices. For the time being, we are looking at what is working in Gujarat. After the department prepares the detailed report by next week, we will move forward.”

According to the proposal before the Standing Committee, CESL – NEBP Program Manager – sought expressions of interest from various cities to deploy EVs. Accordingly, VMC also responded to CESL’s inquiry, expressing interest in deploying 200 public transport buses in Vadodara under NEBP.

However, the proposal stated that since the VMC would have to provide the infrastructure to operate the buses, including amenities for car parks and charging points as well as ensuring real-time monitoring of EVs, it would be “appropriate” to form an SPV headed by a municipal commissioner and city engineer.
The proposal also said that Vadodara could be developed into an “electric hub with the support of the World Resources Institute (WRI) to create a sustainable ecosystem for the use of electric vehicles in public and private transport.” The proposal indicated that the World Resources Institute – India was the technical assistant in drafting the Gujarat EV Policy, 2021, as well as transportation guidelines for electric vehicles in the cities of Surat and Ahmedabad, including the financing component of the project’s feasibility gap.

“The idea of ​​introducing EV buses for public transport is welcome but forming an SPV for itself is not necessary… The proposal should be rejected,” Ravat said in a letter to the standing committee chairman on Thursday. “None of VMC’s previous SPVs delivered what was expected of them.” …whether it is an SPV for public transportation in the beginning or an SPV under a smart city project…If the capital of EV buses must be paid by the civil body to the SPV, why can’t the company directly operate the buses?SPV subverts the provisions of the GPMC law, which must to apply in the case of budget drafts for such projects and, therefore, it is illegal and unconstitutional to form a SPV by diversion from the GPMC Act.”



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