The board of directors of Pune Mahanagar Parivahan Mahamandal Ltd (PMPML) on Monday decided to cancel the order for 125 buses given to Ashok Leyland due to non-delivery of vehicles on time.
The board of directors of Pune Mahanagar Parivahan Mahamandal Ltd (PMPML) on Monday decided to cancel the order for 125 buses given to Ashok Leyland due to non-delivery of vehicles on time.
Director of the transport utility and chairman of the standing committee of the Pune Municipal Corporation (PMC), Ganesh Bidkar, told reporters that there has been a delay in the delivery of
buses to PMPML by Ashok Leyland.
The board had invited a representative of Ashok Leyland to present his view on the issue during the board meeting on Monday, but the representative did not turn up, he added.
He said Ashok Leyland has not supplied a single bus during the stipulated time. Hence, the board decided to cancel the order of 125 out of 200 buses given to that company. The PMPML has made an advance payment for 75 buses. Hence, the transport utility would only buy 75 buses.
He said Ashok Leyland was served a notice about the delay in supply of vehicles and later, it was sent a termination notice also.
The PMPML has decided to transfer the order of 125 buses from Ashok Leyland to Tata Motors and to ask that company to supply the vehicles within a certain time limit.
He said 75 buses of Tata Motors have been parked in company’s Bhiwandi depot. They are likely to be supplied in a few days, according to the representative of the company, who attended the meeting with the board of directors.
He said the PMPML management had some understanding with the labour union about the implementation of sixth pay commission recommendations for pay hike. Accordingly, the company would have to bear a burden of Rs200 crore for the arrears and Rs5.51 crore per month for the hike.
He said the board of directors had decided to not to implement the agreement immediately, but to seek permission of the state government as it would require funding by the PMC and Pimpri Chinchwad Municipal Corporation (PCMC).
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