Government scraps private maintenance clause so DTC can purchase buses

Transport Minister Kailash Gahlot Wednesday said the DTC had decided to do away with the annual maintenance clause — which made it mandatory for bus manufacturers to look after the upkeep and maintenance of buses after selling it to the Delhi government.

By: Express News Service | New Delhi | Published:June 22, 2017 2:56 am
dtc buses, annual maintenance clause, delhi government, kailash gehlot, delhi roadways The DTC has decided to procure 1,000 new buses. (File Photo)

The Delhi government has scrapped the Annual Maintenance Clause (AMC) from its tendering process for procurement of buses. Officials called it an “obstacle” which has been keeping the government’s Delhi Transport Corporation (DTC) from buying buses for the last seven years.

Transport Minister Kailash Gahlot Wednesday said the DTC had decided to do away with the annual maintenance clause — which made it mandatory for bus manufacturers to look after the upkeep and maintenance of buses after selling it to the Delhi government.

The DTC, Gahlot said, will now maintain the 1,000 new non-AC, standard floor buses that the state government is planning to purchase this financial year, at a cost of Rs 400 crore. Technicians will be hired, if required, for the upkeep of the buses, he said.“The DTC board decided Tuesday to procure 1,000 standard-floor buses, which will augment public transport in the city, because there is a huge shortage. The annual maintenance clause, a major hurdle in procurement, has been scrapped,” Gahlot said.

The DTC will soon float tenders for the procurement of buses, purchase them and begin bringing them out on the city roads this financial year, a government official said. The scrapping of the AMC should attract more manufacturers once the tenders are floated, the official added.

“The AMC was the primary hurdle that was preventing us from procuring new buses for the last six years. With transport being an essential service, the government needs to control at least 50 per cent of the bus fleet. Keeping that in mind, the government has decided to maintain the buses itself, instead of paying a huge amount demanded by the private manufacturers. This is a huge milestone for the DTC as an organisation. The DTC has the competence, it has good technicians and workshops… Only a little reorganisation is needed, that’s all,” Gahlot said.

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