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The Metropolitan Transport Corporation (MTC), invited bids to procure 600 electric low-floor buses through a Gross Cost Contract (GCC) under the World Bank-funded Chennai City Partnership project. This will bring the total number of e-buses to hit Chennai roads to 1,420. In the second phase of the partnership project, the MTC has planned to procure 400 AC and 200 non-AC electric buses on a GCC basis, paying the contractor on a 'per km' basis. Per the tender provision, the bus procurement number could increase by up to 25 per cent. In the first phase, MTC placed orders to procure 500 electric low-floor buses including 100 AC buses and deliveries of the buses are expected from April 2025. A senior MTC official said the corporation would receive 1,420 electric low-floor buses - of which 820 would be AC buses and 600 non-AC buses.Under the GCC model, electric buses proposed to be procured will be operated and maintained by a private company. In other words, the electric buses will be operated under a public-private-partnership model wherein the company will provide the drivers while the conductors will be from the MTC. The technically qualified company would be selected based on the cost per km charge they quoted. The company will operate the electric buses from one point to another at an MTC fixed fare. The transport corporation has awarded a contract to OHM Global Mobility Pvt Ltd, a subsidiary of Ashok Leyland and Switch Mobility, for the procurement of 500 low-floor electric buses, including 100 AC buses, in the first phase. Under the GCC model, the private sector would be responsible for fleet provision and operations. The MTC would pay Rs 77.16 per km for non-AC e-buses and Rs 80.86 per km for AC e-buses. The Institute of Road Transport has floated a separate tender to procure 500 low-floor electric buses, including 320 buses for MTC, 100 for TNSTC Madurai and 80 for TNSTC Coimbatore, under the KfW-funded Climate Friendly Urban Mobility project.