Noida: The development authorities in Noida, Greater Noida and Yamuna Expressway have come together to form a special purpose vehicle (SPV) to operate an electric bus service — attempting to fill a major gap in public transport that is often felt by commuters in Noida, whose recent expansion is away from the metro network.
The SPV will operate a fleet of 500 electric buses, some of which will connect Noida with Delhi and other neighbouring cities. A request for proposal for the bus service was issued last month following an order from UP govt.
A robust public transport system has eluded the city since 2020, when Noida Metro operated a small fleet of buses for last-mile connectivity from its stations. The city's commuters currently rely on the Noida-Greater Noida metro corridor (29km) operated by NMRC and Blue Line (12km) of Delhi Metro. Last-mile link from the stations primarily depends on electric rickshaws and e-bikes.
Tentatively named Noida City Bus, the SPV will oversee the selection of an operator to manage the service, with additional CEOs of all three authorities serving on its board.
"The city bus service will be operated through a company that will be responsible for selecting an operator to manage its operations. We expect to finalise the terms and conditions for the SPV in our upcoming board meeting, the date for which will be confirmed soon," said Lokesh M, the Noida Authority CEO.
According to the CEO, the operator was likely to be finalised in two months so that the bus service could start by the end of Feb — two months before the Noida International Airport becomes operational.
The Rs 675-crore project involves deploying 257 buses on 13 routes of Noida, 196 in Greater Noida (9 routes), and 52 in the Yamuna Expressway (2 routes). The fleet will have 250 buses with 25 seats and another 250 with a 35-seater capacity. They will utilise the existing terminal in Sector 82 and the NMRC depot in Sector 90 for parking. Officials said since the service prioritised public benefit over profitability, the financial shortfall incurred in running the buses would be shared by the three development authorities — based on the number of buses and routes allocated to each.
This will be done through viability gap funding (VGF), which is estimated to be Rs 9 crore or more a month for Noida Authority alone.
The Noida service aims at maintaining affordability by aligning fares with Delhi Transport Corporation rates. Each bus is expected to cover 72,000km annually, averaging 200km daily for 360 days.
The authorities are also exploring the option of procuring additional buses under the PM E-Bus Sewa scheme to strengthen the initiative further.
Officials acknowledged the current urban transport system's inadequacy and emphasised the importance of launching a city bus service before the airport became operational in April next year. The airport is likely to have its own cab service in a project for which the authorities have inked a deal with Mahindra.
Dipankar Kumar, vice-president of the residents' body NEFOWA, expressed concerns about potential operational challenges in running the buses.
"Encroachments and congestion will be significant challenges in running these buses efficiently. Greater Noida West is likely to benefit the most from this service, as over 2.5 lakh people live in a relatively small area. Priority should be given to routes connecting key locations such as Surajpur, Pari Chowk, commercial hubs, and metro lines along the Noida Expressway. In Delhi, the buses should take commuters to major transit points like ISBT Kashmiri Gate and Anand Vihar," he told TOI.