The Nagaland Government has signed a Memorandum of Agreement (MoA) with Tata Motors Limited for the procurement of 43 new buses aimed at strengthening public transport services under the Nagaland State Transport (NST) department.
The agreement was signed on Tuesday at the Chief Secretary’s Conference Hall, Nagaland Civil Secretariat, Kohima, in the presence of Chief Secretary Sentiyanger Imchen.
Under the arrangement, the State will procure the buses at a total cost of Rs 13 crore through a deferred payment model, allowing payments to be spread over three years without immediate heavy financial burden.
The State will begin with a mobilisation advance of Rs 5 crore, followed by two instalments of Rs 4 crore each in the subsequent years, funded through State Plan allocations.
Officials said the model is intended to reduce reliance on conventional borrowing while ensuring timely fleet expansion for NST.
As per the agreement, all 43 buses are expected to be delivered within three months, significantly increasing NST’s operational capacity. The expansion is expected to improve passenger transport services across both urban and rural routes in the State.
Transport officials said the new fleet will enhance service reliability, passenger safety and comfort, while also improving last-mile connectivity and reducing pressure on the existing aging fleet.
The initiative is also expected to strengthen both inter-district and interstate transport connectivity, with potential improvements in route coverage and service frequency.
Described as a structured procurement initiative between Tata Motors Limited and the State Government, the agreement marks one of the larger fleet augmentation efforts undertaken by NST in recent years.
The tripartite agreement was signed by Er Merangkaba Imchen, Additional Chief Engineer representing NST, Ketoulhou Metha, OSD from the Finance Department, and Ajay Gupta, Deputy General Manager (Sales & Marketing), representing Tata Motors Limited.