The Government of Nagaland has entered into a landmark Memorandum of Agreement (MoA) with Tata Motors Limited for the procurement of 43 buses to strengthen and expand public transport services under the Nagaland State Transport (NST) department.

The agreement, signed at the Chief Secretary’s, Conference Hall at the Nagaland Civil Secretariat, Kohima on May 5 introduces a structured deferred payment mechanism, allowing the State to acquire the fleet without immediate heavy capital outflow. The total project cost of ₹13 crore would be paid in three installments over a period of three years, beginning with a mobilization advance of ₹5 crore, followed by ₹4 crore each in the subsequent two years. The payments would be serviced through State Plan allocations, minimizing additional financial burden and avoiding conventional borrowing.

According to an official update, 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 significantly enhance operational efficiency, improve service coverage across urban and rural areas, and increase revenue generation potential for the department.

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Officials stated that the induction of the new buses would improve passenger safety, comfort, and reliability, while also 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 marks 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 & Marketing), representing Tata Motors Limited.