Vadodara: The city’s PM e-Bus service is set to incur an expenditure of Rs 26.55 crore over five years on ticketing, electronic ticketing machines (ETMs), ticketing software and fare and revenue collection for an initial fleet of 100 buses.The proposal, which will come up before the Vadodara Municipal Corporation’s (VMC) standing committee on Friday, recommends awarding the five-year contract to Mehsana-based Digvijay Enterprise at a negotiated rate of Rs 1,475 per bus per day. The rate is 9.49% higher than the civic body’s estimated cost of Rs 1,347.08 per bus per day.VMC had estimated the five-year cost for 100 buses at Rs 24.24 crore. Digvijay Enterprise had initially quoted Rs 1,492 per bus per day, which would have pushed the total contract value to Rs 26.86 crore. Following negotiations, the agency reduced its quote to Rs 1,475, resulting in a saving of around Rs 30.6 lakh for the civic body.Although the contract will initially cover 100 buses, VMC is expected to have 130 e-buses operating in the city during the first phase. Around 81 e-buses are currently in service, and the civic body expects the number to rise to 130 by the end of this year or Jan next year. The broader first phase envisages a fleet of 130 buses, while the overall project is planned for 250 e-buses.If approved, the agency will be paid for the buses covered under the arrangement, including those already in operation. The contract will also extend to additional buses inducted during its five-year tenure, with the applicable rate subject to approval by the standing committee. Expenses incurred by the agency for revenue collection from these additional buses will also be covered under the arrangement.The negotiated rate of Rs 1,475 per bus per day is based on a detailed cost calculation. Of this, Rs 1,021 is earmarked towards the salaries of two conductors, Rs 122.52 towards their provident fund contributions and Rs 33.20 towards ESIC. The calculation also includes Rs 15 for insurance, Rs 24 towards roll expenses, Rs 60.21 for supervisory staff and Rs 74 towards ETM charges. Administrative expenses account for the remaining amount. The total works out to Rs 1,474.93, rounded off to Rs 1,475.The selected agency will handle fare and revenue collection as well as ETM and other ticketing-related operations. The system is also expected to enable digital payment options and facilitate the development of a commuter pass system.VMC sources said around 10,000 commuters currently use the e-bus service every day. With the fleet expected to expand to 130 buses in the first phase, an efficient ticketing and revenue-collection system is likely to become a key operational component of the expanding service.The ticketing contract is separate from the broader gross-cost-contract (GCC) arrangement for operating the PM e-Bus service.



