Moving a step forward in the proposal to run 100 AC and non-AC buses in the city, the UT Administration has awarded the contract for the project to Tata Motors. Confirming this, Secretary (Transport) Ram Niwas said: "We have received the Election Commission's nod to award the Rs 35-crore contract to Tata Motors under the Jawaharlal Nehru National Urban Renewal Mission. A 100 buses - 40 AC and 60 non-AC buses - will ply within the city soon."

After a detailed project report was submitted by the UT Transport Department, Tata Motors has been awarded the contract for the entire fleet of 100 buses. The funds had already been sanctioned to the Municipal Corporation for the JNNURM projects.

The total estimated cost of the project is Rs 42 crore, of which 80 per cent is to be borne by the Ministry of Urban Development and the rest will to be contributed by the Administration. Chandigarh is one of the 80 cities in the country where the ministry will fund modern bus services. The Transport department had offered to introduce 50 AC and 50 non-AC buses but the ministry approved only 40 AC and 60 non-AC buses.