The Ahmedabad Municipal Transport Service (AMTS) has decided to add 225 electric buses to its fleet, even though it is already in heavy debt. Currently, AMTS owes ₹6,000 crore to the Ahmedabad Municipal Corporation. The operation of these new buses will be managed by a private agency called Arrow Eagle. The rate agreed upon is ₹94 per kilometre, which is the highest in India for electric bus operations.
This decision has raised eyebrows among experts and citizens. Just four months ago, Gujarat’s Convergence Energy Services Limited (CESL) offered a much lower rate of ₹65.5 per kilometre for 9-metre electric buses. Other states in India are also paying lower rates for electric bus operations. For example, Madhya Pradesh pays ₹58.1, Maharashtra ₹69.05, and Rajasthan ₹60.09.
In fact, the Janmarg BRTS project in Ahmedabad set a rate of ₹72 per kilometre for its 12-metre buses just six months ago. This significant difference in pricing has led to questions about AMTS’s financial strategy.
Critics are particularly concerned about Arrow Eagle. The agency is relatively new, having been established only two years ago. Additionally, the penalty imposed for service issues, such as not operating enough buses, is capped at just 10%. This raises concerns about the reliability of the service.
With AMTS facing increasing financial strain, there are doubts about its ability to sustain operations in the long run. Some critics have gone so far as to suggest that it might be better to shut down the organisation altogether. Former municipal commissioner Guruprasad Mohapatra once questioned the viability of AMTS, suggesting it might be better to lock its doors.
As the situation stands, the deployment of these new electric buses is part of a wider trend in India towards increasing the number of electric vehicles in public transport. India has seen a rise in electric bus registrations, with 2,100 units registered in the first half of 2025 alone. This represents a 33% increase from the previous year.
Despite the positive trend in electric mobility, AMTS’s financial situation raises serious questions. While electric buses are essential for decarbonising public transport, the sustainability of AMTS is crucial for the future of public transport in Ahmedabad. The situation will need close monitoring as citizens express their concerns about the financial health of the transport service and the implications of high operational costs.
In conclusion, while the addition of electric buses is a step towards a more sustainable future, the financial burdens faced by AMTS and the high costs associated with this new contract are cause for concern. It remains to be seen how AMTS will navigate these challenges and ensure reliable service for the city’s residents.