Tata Motors fined Rs4 crore as its Delhi buses go up in smoke

The Delhi government yesterday slapped a fine of Rs4 crore on Tata Motors for not properly maintaining the low-floor buses that it supplied to the Delhi Transport Corporation (DTC).

Six of these buses have caught fire or started spewing smoke in less than three weeks.

These buses carry 70-80 passengers during peak hours. Delhi transport minister Arvinder Singh Lovely told the state assembly that the Delhi government had also withheld Rs150 crore that was to be paid to Tata Motors under a maintenance contract.

"Until and unless this maintenance and safety issue is resolved, we shall not release the payment," Lovely said after opposition benches accused him and his government of favouring Tata Motors and not taking commuters' safety seriously.

The annual maintenance contract (AMC) signed between Delhi government and Tata Motors says that the company has to bear all costs incurred on maintaining the buses, including spare parts, fixing mechanical faults, instituting daily checks and servicing, and ensuring supplies.

Delhi has committed nearly Rs50 lakh to the company as AMC for every bus for the first 12 years the bus is on the road, after which it will pay Rs10.62 per km for maintenance. But Tata's low-floor buses have routinely missed trips since they were rolled out in November 2007 because of poor maintenance, tripping DTC's income.