Chennai MTC Collects Rs 9.5 Crore Penalty From Electric Bus Operator OHM Global

The Metropolitan Transport Corporation (MTC) has collected a penalty of Rs 9.5 crore from electric bus operator OHM Global Mobility in Chennai for failing to meet service conditions. The penalty, revealed through a Right to Information (RTI) reply, was collected for the financial year ending March 2026, during which the operator faced lapses in fulfilling its contractual obligations.

OHM Global Mobility, which is a subsidiary of Ashok Leyland, began its electric bus operations in Chennai in May of the previous year. The private operator started with an initial fleet size of 120 buses before expanding its operations to 625 AC and non-AC electric buses over the subsequent months. These buses run on different MTC routes across the city.

According to the RTI reply, the MTC paid Rs 80 crore to OHM Global Mobility for its bus operations. The services are run under the gross cost contract (GCC) model. Under this specific model, the MTC pays Rs 80.86 per kilometre to the private operator, subject to a minimum assured operation of 200 kilometres per bus per day for a contract period of 12 years.

To avoid penalties, the operator is obligated to fulfil several key service conditions. These include ensuring a minimum fleet availability, which is generally set around 95% to 98%. The operator must also meet reliability standards and achieve the minimum daily kilometres committed under the contract.

Although the RTI reply did not provide a specific break-up of the penalties levied on the operator, MTC officials maintained that the penalties are collected on a monthly basis. The deductions are calculated based on the operator's performance regarding both priority and non-priority standards.

A senior MTC official defended the penalty system, stating that the practice is a globally accepted format designed to improve the standards of performance.