Tamil Nadu Budget 2018: Package for STUs, all old buses to be replaced

Rs 27 bn allocated to transport department, including Rs 7.99 bn as subsidy for free bus passes to students, senior citizens

Looking to revive its debt-ridden public transport system, the Tamil Nadu government is in the process of converting the existing debt of Rs 30.01 billion into share capital assistance and replacing all old buses in use for more than 10 years with new ones. The state government, however, has not mentioned alternative fuels or hybrid buses in its Budget proposals for the year 2018-19.

In 2018-19, the state government shall infuse a share capital of Rs 6 billion into the State Transport Undertakings (STUs) for purchasing and inducting 3,000 new buses. This, along with the 2,000 new buses sanctioned during