Chennai: Tamil Nadu has allocated ₹13,561 crore to the transport department in the revised budget for 2026-2027.State govt announced 1,000 air-conditioned electric buses for the city under the gross cost contract (GCC) model. To support the rollout of the new fleet, ₹500 crore has been earmarked for upgrading electric vehicle infrastructure such as charging facilities at bus depots.MTC has been operating 625 electric buses under the GCC model, of which 225 are air-conditioned. MTC operates a fleet of 3,858 buses. The govt has also allocated ₹7,675 crore as subsidy to the state transport undertakings to support their operations. In addition, ₹2,650 crore has been provided as viability gap funding, while ₹1,005 crore has been earmarked for equity capital assistance for the transport corporations.
