The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) that was launched by the UPA government is on its last legs.
The tenders for buses floated under the scheme are of huge importance to commercial vehicle manufacturers like Tata Motors.
In an exclusive interview to CNBC-TV18, Tata Motors’ Vernon Noronha shares his view on the scheme and how the days ahead are likely to pan out for the company.
Below is the edited transcript of Vernon Noronha’s interview with CNBC-TV18's Alexander Mathew.
Q: What’s the status on the JNNURM orders?
A: JNNURM is now in execution phase. All the orders were received up to February last year and now we are actually delivering those vehicles to various SPVs and in few cities you can actually see them on the road. They are really making a big difference.
One can see that urban transport has come into a new phase of modernisation. We have almost 3,500 orders collected for against the JNNURM scheme. We have delivered about 1,500 buses and the next 2,000 should be delivered by October-November.
Q: At this point are we seeing some slow growth as far as giving out of tenders is concerned or is there no change whatsoever?
A: Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme there are no new tenders being floated but we believe that the MOUD, the Ministry of Urban Development will shortly announce a now scheme under a new name one of these days shortly, this is what we believe and that will take care also in urban transport.
Q: So, give us an update about the number of orders you have from the government front including JNNURM, where is it at right now and what is the period of delivery that we can look at?
A: In the pure state transport union segment, we have a back order of about 2,000 vehicles chassis and JNNURM 2,000, so we have about 4,000 vehicles to deliver but in district transports the tenders are continuously being issued and we quote for them, so by the end of the year I think those numbers will improve.
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