Kohima, May 5, 2026: In a major step toward strengthening public transportation services in the state, the Government of Nagaland has signed a landmark Memorandum of Agreement (MoA) with Tata Motors Limited for the procurement of 43 new buses under the Nagaland State Transport (NST) department.
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| Officials from the Nagaland government and Tata Motors exchange documents after signing an MoA for procurement of 43 buses to strengthen NST services in Kohima. (Image: DIPR Nagaland) |
The agreement was signed at the Nagaland Civil Secretariat in Kohima and is expected to significantly enhance the operational capacity of NST while improving connectivity and transportation services across the state. Officials described the initiative as one of the largest fleet expansion programmes undertaken by the department in recent years.
A key feature of the agreement is the adoption of a structured deferred payment model, allowing the state government to acquire the buses without placing an immediate heavy financial burden on public finances. Under the arrangement, the total project cost of ₹13 crore will be paid over a period of three years. The payment structure includes an initial mobilization advance of ₹5 crore, followed by two installments of ₹4 crore each in the subsequent years.
According to officials, all 43 buses are expected to be delivered within the next three months, providing an immediate boost to NST’s fleet strength. The addition of new vehicles is expected to improve service reliability, increase route coverage, and enhance operational efficiency in both urban and rural areas of Nagaland.
The new buses will also help address challenges posed by the department’s aging fleet, reducing service disruptions and maintenance-related issues. Authorities said passengers can expect improved safety, comfort, and reliability, while the expansion is also expected to strengthen last-mile connectivity and improve access to transportation in underserved areas.
Officials further noted that the project will support better inter-district and interstate connectivity, facilitating smoother movement of people and contributing to economic and social development across the state. The enhanced transport network is also expected to improve access to education, healthcare, markets, and other essential services.
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The agreement has been described as a first-of-its-kind structured procurement model between Tata Motors and a government entity, highlighting an innovative approach to public sector fleet acquisition and financial management.
The tripartite agreement was signed in the presence of Chief Secretary Sentiyanger Imchen. The signatories included Er. Merangkaba Imchen on behalf of NST, Ketoulhou Metha representing the Finance Department, and Ajay Gupta, Deputy General Manager (Sales & Marketing), representing Tata Motors.
Officials expressed confidence that the initiative will modernize public transportation in Nagaland, strengthen NST’s service delivery, and contribute to the state's long-term infrastructure and connectivity goals.
