The skyrocketing price of diesel and increasing maintenance cost have catalysed private bus operators to probe the feasibility of retrofitting CNG (compressed natural gas) kits in buses, to rein in operational cost.
A private bus from the city returned from New Delhi recently with a retrofitted CNG kit in a bid to overcome the shortfall in revenue following the COVID-19 restrictions and to curtail the daily operational expense.
“The retrofitment costs approximately ₹4 lakh. Although keen to be part of the upgrade process, most bus operators are not in a position to spare this much money. They will opt for this if the government arranges an incentive in the form of zero-interest loan,” says M.B. Satyan, president, Kerala State Private Bus Operators’ Federation.
Electric buses
Another cost-effective alternative would be electric buses. But a 25-seater bus would cost around ₹1 crore and a 40-seater one, ₹1.5 crore.
The State government which is keen on promoting electric buses is doing little to encourage a shift to CNG as fuel, despite the relatively low investment in retrofitting CNG kits.
Already, the cost of purchasing a brand new diesel bus has risen to ₹35 lakh, after the new bus building code took effect in 2018.
This has in turn increased the maintenance cost too. Bus operators will be keen on reining in the expense by investing in CNG kits if the government steps in with help, Mr. Satyan says.
Bus operators have for long been complaining of inadequate number of CNG retailing outlets as another reason for not opting for a shift to CNG.
Officials of the Motor Vehicles Department speak of how the shift to CNG buses augurs well for all stakeholders, considering the noticeable difference in operational cost and air/sound pollution levels.
Price difference
“I wonder why private buses shied away from CNG for this long. The investment of ₹4 lakh in retrofitting a CNG kit can be recouped in a year. This is because there is a price difference of over ₹20 between a kg of CNG and a litre of diesel. Moreover, CNG vehicles have higher fuel efficiency. The maintenance cost of components too is low when compared to diesel buses, since CNG leaves lesser wear and tear. This alone would reduce operational expense per bus by around ₹1,000 per day,” says a senior MVD official.