Olectra, Red bus operators threaten to stop service

Nagpur: The electric bus manufacturer and operator Olectra Greentech Limited, which is running women-only buses since September 2019, has threatened to stop the service as the Nagpur Municipal Corporation (NMC) has failed to pay even a single penny out of the Rs1.10 crore dues till date.
The three Red bus operators also have threatened to discontinue Aapli Bus service being pressed into transporting residents from containment zones to quarantine centres over uncleared bills.
In a letter to the NMC’s transport manager, Olectra stated that despite many requests for release of due operational payments since September 2019, nothing has been done in this regard.
“Even though the NMC has not paid us since the inception of the e-bus operations, we have been running the service uninterruptedly by timely paying salaries to drivers, service manpower, electric charges related to energy consumed for vehicle operations, depot lighting etc,” the letter stated.
The due operational payments from the civic body are increasing every month. Due to lockdown for over 50 days, companies are finding it difficult to pay salaries and rents of the offices. In addition to this, earnest money deposit submitted for an amount of Rs10 lakh while bidding is also due from the NMC’s end. The NMC has also failed to return the performance bank guarantee, the letter revealed.
NMC’s transport committee chairman Narendra Borkar admitted that the civic body has defaulted on the firm’s payment since September 2019. To a query, Borkar also admitted that the department has made short payments to all three Red bus operators for providing buses to ferry citizens from containment zones to quarantine centres.
He, however, assured to look into the matter and claimed that he has approached municipal commissioner Tukaram Mundhe to release payment to all the six firms, including three Red bus operators and two ticketing agencies, so that they can pay salaries to drivers and conductors.