The Ahmedabad Municipal Corporation (AMC) Standing Committee has approved a proposal to hire 300 electric buses for the Ahmedabad Municipal Transport Service (AMTS) at a rate of ₹91.08 per kilometre.
The buses will be procured on a hiring basis from two private operators — Adinath Bulk Pvt Ltd and Arham Transport Pvt Ltd. Civic officials said the move is aimed at strengthening the AMTS fleet and enhancing public transport services across Ahmedabad.
However, the decision has drawn criticism from some quarters, with concerns being raised over the cost of the project at a time when AMTS continues to face significant financial challenges.
Critics have questioned the approved per-kilometre rate, claiming it is higher than prevailing market rates for similar electric bus operations. Some have also pointed out that comparable services operated or hired by the Gujarat State Road Transport Corporation (GSRTC) are reportedly available at lower costs.
Questions have also been raised after reports that one of the firms awarded the contract is linked to the family of Dariapur MLA Kaushik Jain.
AMTS, once regarded as the backbone of Ahmedabad’s public transport network, has been struggling with mounting financial losses and rising debt in recent years.
According to official data, the transport undertaking’s debt has increased steadily over the past six years. AMTS recorded debts of ₹331.60 crore in 2020-21, ₹341 crore in 2021-22, ₹371 crore in 2022-23, and ₹401 crore each in 2023-24 and 2024-25. The debt rose further to ₹412.36 crore in 2025-26.
For the 2026-27 financial year, the civic body has proposed loan assistance of ₹600 crore for the transport service.
Despite the financial concerns, AMC officials maintain that the addition of 300 electric buses will help modernise the fleet, improve commuter services and support the city’s transition towards cleaner and more sustainable public transportation.