Inks Memorandum of Agreement with Tata Motors
Kohima, May 5 (MExN): The Government of Nagaland on Tuesday signed a tripartite Memorandum of Agreement (MoA) with Tata Motors Limited for the procurement of 43 new buses.
According to the State DIPR, the landmark agreement is aimed at strengthening public transport services under the Nagaland State Transport (NST) department, the State DIPR report.
The MoA agreement, signed at the Chief Secretary’s Conference Hall at the Nagaland Civil Secretariat, Kohima on May 5, introduces a structured deferred payment mechanism to enable fleet expansion without immediate heavy capital expenditure, it said.
The total project cost of Rs 13 crore will be paid over three years through State Plan allocations, beginning with a mobilisation advance of Rs 5 crore, followed by two instalments of Rs 4 crore each in the subsequent years.
The payments will be serviced through State Plan allocations, minimizing additional financial burden and avoiding conventional borrowing, the DIPR added.
Under the agreement, NST is expected to receive delivery of all 43 buses within three months, providing an immediate boost to its fleet capacity.
The expansion is expected to improve operational efficiency, widen service coverage in both urban and rural areas, and enhance the department’s revenue potential.
Officials said the induction of the new buses would improve passenger safety, comfort, and reliability, while strengthening last-mile connectivity and reducing service disruptions caused by the ageing fleet.
The initiative is also expected to improve both inter-district and interstate transport connectivity, they added.
Described as a first-of-its-kind structured procurement model between Tata Motors and a government entity, the agreement marks one of the largest fleet expansion efforts undertaken by NST.
The tripartite agreement was signed in the presence of Chief Secretary Sentiyanger Imchen.
Signatories included Er Merangkaba Imchen, Additional Chief Engineer representing NST, Ketoulhou Metha, OSD from the Finance Department, and Ajay Gupta, Deputy General Manager (Sales & Marketing), representing Tata Motors.
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