Amid concerns and speculation over the alleged privatisation of the Andhra Pradesh State Road Transport Corporation (APSRTC), the RTC management has issued a detailed clarification, stating all its initiatives were aimed at strengthening public transport and improving passenger amenities while ensuring transparency.

The corporation’s Chief Mechanical Engineer (Coach and Body) M. Srinivasa Rao said the introduction of electric buses was being undertaken under the Government of India’s PM e-Bus Sewa scheme, which seeks to promote environmentally friendly public transport across the country. Under the scheme, electric buses are operated through the Gross Cost Contract (GCC) model, in which private agencies procure and maintain the buses, while passenger transport operations remain under the control of State Transport Undertakings.

He said APSRTC had initially sought approval for 60 electric buses, later revised the proposal to 100, and then submitted plans for 750. After a national-level tender process conducted by Convergence Energy Services Limited (CESL), APSRTC decided to introduce 750 electric buses in phases across major cities and key routes in Andhra Pradesh, with 300 in the first phase.

Mr. Rao said the GCC model offered substantial financial benefits. While the corporation’s earlier fleet of 100 electric buses operated at an electricity cost of around ₹56 a kilometre, the new 12-metre and 9-metre electric buses were proposed to operate at about ₹48.55 and ₹40.17 a kilometre respectively. The model also reduced the burden of vehicle procurement, maintenance and battery replacement, allowing APSRTC to focus on delivering safe, modern, comfortable and pollution-free transport, he said.

Addressing concerns over Public-Private Partnership (PPP) projects, Executive Director (Administration) K.S. Brahmananda Reddy said the leasing of vacant lands through open tenders had been an established practice since 2005 to generate commercial revenue and strengthen the corporation’s finances. Over the last two decades, about 24.86 acres of APSRTC land had been allotted on a Build-Operate-Transfer (BOT) basis for 29 projects.

He said the redevelopment of Tirupati bus terminus was under consideration with technical support from the National Highway Logistics Management Limited (NHLML), a special purpose vehicle of the National Highways Authority of India (NHAI). The project aimed to provide passenger amenities while creating commercial revenue through the PPP model, he said, adding that detailed guidelines for transparent land allotment through open tenders were being prepared.

Mr. Reddy said that apart from the Tirupati bus terminus redevelopment, no other proposals for the allotment or development of vacant RTC lands under the PPP model were under consideration. Any future projects would also be undertaken only through transparent open tenders, he said.

He said all decisions were being taken in accordance with Government of India guidelines and in the larger public interest.