Kohima: The Government of Nagaland has signed a landmark Memorandum of Agreement (MoA) with Tata Motors Limited to procure 43 new buses, aiming to strengthen and expand public transport services under the Nagaland State Transport (NST) department.
The agreement was signed at the Chief Secretary’s Conference Hall at the Nagaland Civil Secretariat in Kohima on May 5, 2026. It introduces a structured deferred payment mechanism, enabling the state to acquire the fleet without an immediate heavy capital outlay.
Under the arrangement, the total project cost of Rs 13 crore will be paid in three instalments over three years. This includes a mobilisation advance of ₹5 crore, followed by Rs 4 crore each in the next two years. Payments will be met through State Plan allocations, minimising additional financial burden and avoiding conventional borrowing.
NST is expected to receive delivery of all 43 buses within three months, providing an immediate boost to fleet capacity. The expansion is anticipated to enhance operational efficiency, improve service coverage across both urban and rural areas, and increase the department’s revenue potential.
Officials said the induction of the new buses will improve passenger safety, comfort and reliability, while strengthening last-mile connectivity and reducing disruptions caused by an ageing fleet. The move 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.