ASHOK LEYLAND AND TATA INCREASE BUS PRODUCTION
To avoid delays in supplying low-floor buses to the Delhi Transport Corporation (DTC), Tata Motors and Ashok Leyland have speeded up the production of these buses. DTC, which has placed an order for around 2,500 low-floor buses (including some airco buses as well) that will be used during the 2010 Commonwealth Games in Delhi, is said to have asked Tata Motors and Ashok Leyland to make sure that the buses are supplied on time.
While Ashok Leyland has already overshot its September deadline, Tata Motors says it’s confident of being able to meet its February 2010 deadline.
Tata Motors, which will be supplying 1,625 buses to DTC, has stepped up production at its Dharwad facility. The DTC contract for these modern buses was valued at Rs 2,200 crore, of which Rs 900 crore is for the buses and Rs 1,300 crore is for their maintenance for the next 12 years.
Ashok Leyland, which will be supplying 350 AC buses and 525 non-AC buses to DTC, has a contract for Rs 1,190 crore, of which Rs 480 crore is for the buses and Rs 710 crore is for maintenance of the buses for 12 years. ALL will be supplying the buses from its facility in Alwar, Rajasthan.
It’s been reported that some Chinese bus manufacturers were also interested in the DTC contract, but backed out on the issue of also having to maintain the buses for 12 years.
