State government inks MoA with Tata motors for 43 new buses

State government has signed a landmark Memorandum of Agreement (MoA) with Tata Motors Limited to procure 43 buses, a move aimed at revitalizing the Nagaland State Transport department’s aging fleet.
According to a DIPR report, the agreement was signed Tuesday in the conference hall of the chief secretary at the Nagaland Civil Secretariat, Kohima. MoA introduced a structured deferred payment mechanism, allowing the state to acquire the fleet without an immediate heavy capital outflow.
The total project cost of Rs. 13 crore would be paid in three instalments over a period of three years, beginning with a mobilization advance of Rs. 5 crore, followed by Rs. 4 crore each in the subsequent two years. Payments would be serviced through State Plan allocations, minimizing additional financial burden and avoiding conventional borrowing.
Under the agreement, NST is expected to receive delivery of all 43 buses within three months, leading to an immediate boost in fleet capacity. The expansion is anticipated to enhance operational efficiency, improve service coverage across urban and rural areas, and increase revenue generation potential for the department.
Officials said the induction of the new buses would improve passenger safety, comfort and reliability, while strengthening last-mile connectivity and reducing disruptions caused by the aging fleet.
The initiative is also expected to enhance both inter-district and interstate transport connectivity.
Described as a first-of-its-kind structured procurement model between Tata Motors Limited and a government entity, the agreement marked one of the largest fleet expansion efforts undertaken by NST.
The tripartite agreement was signed in the presence of Chief Secretary Sentiyanger Imchen. Signatories included Er. Merangkaba Imchen, additional chief engineer representing NST; Ketoulhou Metha, OSD from the finance department; and Ajay Gupta, deputy general manager (sales and marketing), representing Tata Motors Limited.