CNG bus project to get Rs 5-mn fund

Islamabad: The Finance Division has assured the availability of funds to the tune of Rs 5 million for the implementation of the project relating to dedicated CNG buses during 2008-2009.

This was discussed in the third meeting of Steering Committee on Prime Minister Programme for CNG buses.

Federal Minister for Environment and Chairman Steering Committee on CNG buses Hameedullah Jan Afridi chaired the meeting, whereas Faridullah Khan, Managing Director of Enercon, Khusnood Akhtar Lashari, Secretary, Ministry of Environment, the Transport Minister of Sindh, provincial Transport Secretaries, and representatives of the relevant ministries and the operators of the CNG buses were also present.

Meanwhile, official sources said that Rs 5 million is part of the total cost of the dedicated CNG buses ie Rs 5 billion that has been allocated for five year.

Break-up of Rs 5 million revealed that Rs 2.5 million would be given to Karachi whereas the rest of the amount would be allocated to the remaining provinces according to their requirement and population.

In the meeting the committee also considered the issue raised in the last steering committee on the CNG buses that the government should reconsider the price of the CNG buses. As they were of the view that due to the depreciation of rupee against dollar, the prices of CNG buses has increased from Rs 3.6 million to Rs 7.5 million.

Now out of Rs 7 million the government is giving Rs 3 million as down payment for buying the CNG bus to the investors and Rs 0.371 million interest rate on Rs 2.9 million, loan that the investors would take from the banks to buy the dedicated CNG buses. Official sources further said that the committee has also asked the Balochistan government to draft their problems and demands for the CNG buses and present before the steering committee.