Kochi: Nearly three weeks after German government bank KfW and Kerala Urban Road Transport Corporation (KURTC) finalised the modalities for a Rs 560-crore pact to roll out clean fuel buses in Kochi, the government has asked the corporation not to proceed with it before a detailed study into the terms and conditions of the loan. “The project has been put on the back burner as the government is not too pleased with terms reached over a short time frame saying no proper study or political discussion was held. The political circles are also agitated over the officials announcing the project in Kochi without involving them,” sources said.
On September 21, KfW and KURTC officials announced the project details as per which the Germans would provide Rs 560 crore loan under which 783 buses, including 100 electric feeder buses, and the rest using CNG (compressed natural gas) will be rolled out in Kochi by the KURTC. Transport minister A. K. Saseendran said the loan was yet to be finalised. However, he said the corporation would go ahead with the process of rolling out CNG buses.
“We’ve already allocated funds in the budget to operate CNG-run buses. On availing of the KfW loan, a detailed study and further political discussions are required on the terms of the loan. A central government nod too is needed which would take some time. What was announced in Kochi was the minutes of the meeting,” he told DC. KURTC had planned to roll out clean fuel buses in Kochi and at a later stage in Kozhikode. The first of the buses in Kochi was to be launched by March when metro operations begin.
