Chennai: The govt in Tamil Nadu, where two-wheeler registrations have crossed 3 crore for the first time and now make up 84% of all vehicles, has announced a shift towards cleaner public transport. It plans to procure 746 new CNG buses, convert another 1,000 diesel buses into CNG buses and buy 625 electric buses, which are expected to hit the roads in July.
CNG buses are not new to Tamil Nadu, with 21 diesel buses already converted, including one in Chennai. A study found that CNG buses reduce operational costs by around 13% compared to diesel, making them more economical. Building on this pilot, the state plans to introduce 1,768 CNG buses, which could save 116 crore annually in fuel costs. The shift is also expected to cut CO₂ emissions by around 37,190tonnes each year, transport minister S S Sivasankar said during Wednesday's assembly session. Once deployed, Tamil Nadu's CNG fleet will be about half the size of Delhi's, which runs the world's largest fleet.
Following the announcement, opposition members raised concerns about the possible privatization of bus services in Chennai under the guise of introducing electric buses. Responding to this, the minister said that the gross cost contract (GCC) model — recommended by funding agencies — places operational risks on private operators since electric mobility is still an evolving sector. The model, he added, was chosen to manage costs and uncertainties while scaling up green transport initiatives.
Besides this, the government will be replacing 2,250 normal overaged diesel buses to modernize its 20,000-strength bus fleet. However, the expansion comes amid mounting losses, with monthly deficits crossing 566 crore and total loan burden exceeding 20,100 crore. Experts warn that without structural reforms, the financial pressure may overwhelm state transport corporations.