New 100 buses in Delhi?

The Government of Delhi has pressed 100 new standard-floor buses, claim industry sources. These are of the standard floor variety, they inform. Developed under the cluster scheme, the 100 standard-floor buses are capable of seating 37 people and feature GPS trackers, three cctv cameras and hydraulic lifts for the differentlyabled. State sources, that these 100 standard-floor buses are part of the fourth lot, which started delivery in October 2019. Equipped with 14-panic buttons on alternate seat (seven buttons on each side), which on being pressed in case of emergency would cause a large hooter to go off simultaneously, sending an indication to the centres at both police and transport departments, the 100 buses, explain sources, have added to the fleet of 429 buses that have already been deployed under the cluster scheme. Another 1000 are expected to be added to the city’s fleet by January 2020, they add.

With the CV industry racing to comply with BSVI emission norms, starting April 01, 2020, the sales of CVs are expected to have a negative impact in the short-term as per a report by India Ratings and Research (Fitch Group). Amid a fall in CV sales over the last 13 months, in part due to the excess capacity created by the new axle norms and decreasing demand-side fundamentals in the economy, the negative short-term impact of BSVI compliance is expected to lead to credit neutral ownership as fuel efficiency and maintenance benefits are likely to be offset by higher debt repayments. With pre-buying, a phenomenon that has been observed before every emission regulation change until now, not prevalent this time, the impact of BSVI on CV sales is expected to result in muted demand in the near-term. With the impact of the extended monsoon on agricultural produce and a slowdown in rural demand influencing CV sales, the sales of BSVI CVs is expected to lack lustre in the first and second quarter of FY21. An actual improvement in economic prospects could avert such a situation, but at least currently, such a development looks a little difficult. There’s also the issue of risk aversion by financiers. An expensive new BSVI CV could be non-viable for financiers, and an under-utilised fleet with flat freight costs would put pressure on the debt repayment capability of fleet owners.