Scania to shut city’s ethanol-run bus service in two months
Nagpur: In a setback to government efforts to cut down air pollution and also help sugarcane growers at the same time, Swedish bus maker Scania Commercial Vehicles has reportedly decided to shut down India’s first and only eco-friendly ethanol-run bus project. Its operator SST Sustainable Transport Solutions, a fully owned subsidiary of Scania, served notice of termination of service on Thursday to Nagpur Municipal Corporation (NMC).
CEO of SST Torbjorn Glad in the notice stated company would withdraw its ethanol-run buses and close down its depot from midnight of August 12.
The Volkswagen-owned company has blamed non-fulfilment of contract obligations by the civic body for its decision to discontinue the 19-month-old project of running 55 ethanol-run and 25 bio-gas buses. Scania did not reply four-point questionnaire mailed to it.
Scania has already shut down its plant making ethanol-run buses and bus bodies in Karnataka and also pilot project comprising two ethanol-run and one bio-gas buses in Goa. It has also held back ecofriendly city bus project in Thane.
Scania has demanded Rs 19.73 crore from NMC that includes Rs 9.77 crore pending bills, Rs 7.50 bank guarantee, Rs 1.50 crore liquidated damages and Rs 0.96 crore for hiring workshop. In the notice, Scania has mentioned it would withdraw 25 ethanol-run buses from service with effect from August 12. Clearly, Scania will not be bringing in remaining 30 ethanol-run and proposed 25 bio-gas buses.
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