With government extending the time limit for supply of 15,000 buses to states as

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part of second stimulus package, manufacturers are confident that they would meet deadlines given adequate capacity in most categories. The government extended the deadline by six months to December 31.

According to manufacturers, there are no capacity constraints, but some issues relating to technical specifications are yet to be resolved. Ashok Leyland is expected to deliver the major chunk of its order by October or November this year. It has received orders for 5,200 buses out of total order for 10,000 buses.

“There are no capacity constraints, but some issues are there relating to specifications. However, these things are being discussed with respective state transport undertakings and resolved,” said K Sridharan, chief financial officer, Ashok Leyland.

Announcing the stimulus package in January 2009, the centre had approved 15,260 buses for 61 cities covered under Jawaharlal Nehru National Urban Renewal Mission. Most approvals were given in February this year with a rider that orders would be placed by March 31 and supply completed by June 30.

A finance ministry official said there should not be a delay now as the scheme was announced only after manufacturers said they had built-up inventory owing to the slowdown. Another official in the urban development ministry clarified that manufacturers had surplus only in some categories. “In other categories, they will hopefully supply buses by year-end,” he added.

As there were capacity constraints in manufacturing low floor (400 millimeter floor height) and semi low floor (650 mm) buses, the government decided to sanction 8,566 buses as standard buses (900 mm) to enable timely supply. However, manufacturers told the government that due to long process of prototype approval, delay in placement of orders, and requirements like cameras, vehicle tracking system and smart cards, it was not possible to supply the buses by June 30.