India Launches New E-Bus Initiatives
The Indian government is taking significant steps to promote electric mobility through the introduction of two major schemes aimed at enhancing the deployment of electric buses (e-buses). The Ministry of Heavy Industries has announced these initiatives to encourage the adoption of electric vehicles (EVs) across the country. With a focus on sustainability and reducing carbon emissions, these schemes are expected to transform public transportation in urban areas.
PM E-DRIVE Scheme: A Comprehensive Approach
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was notified on September 29, 2024. This ambitious initiative aims to incentivize the sale of various electric vehicles, including e-two-wheelers, e-three-wheelers, e-trucks, e-ambulances, and e-buses. The total financial outlay for this scheme is a staggering ₹10,900 crores, with ₹4,391 crores specifically allocated for the deployment of 14,028 e-buses.
Under this scheme, support for e-buses will be provided exclusively through an operational model known as the Operational Expenditure (OPEX) or Gross Cost Contract (GCC). This means that the financial assistance will be directed to State Transport Undertakings (STUs) or city transport corporations, ensuring that the funds are utilized effectively for the deployment of e-buses. By focusing on operational models, the government aims to create a sustainable ecosystem for electric public transport, making it more accessible and reliable for commuters.
The PM E-DRIVE Scheme represents a significant step towards a greener future. It not only promotes the use of electric buses but also encourages the development of a robust infrastructure to support electric mobility. By incentivizing the sale of e-buses, the government hopes to reduce the reliance on fossil fuels and contribute to cleaner air in urban areas.
PM e-Bus Sewa-Payment Security Mechanism Scheme
Another crucial initiative is the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme, which was notified on October 28, 2024. This scheme has an outlay of ₹3,435.33 crores and aims to support the deployment of over 38,000 electric buses across the country. The primary objective of this scheme is to provide payment security to e-bus operators in the event of defaults by Public Transport Authorities (PTAs).
This payment security mechanism is vital for ensuring the financial stability of e-bus operators. By safeguarding their revenue, the government aims to encourage more private players to enter the electric bus market. This, in turn, will lead to increased competition and innovation in the sector, ultimately benefiting consumers through improved services and lower fares.
The PM e-Bus Sewa-Payment Security Mechanism Scheme is designed to create a more favorable environment for electric bus operators. By addressing the financial risks associated with public transport contracts, the government is fostering a more sustainable and reliable public transportation system. This initiative is expected to play a pivotal role in the widespread adoption of electric buses, contributing to the overall goal of reducing carbon emissions and promoting cleaner urban transport.
PM-eBus Sewa Scheme: Enhancing Urban Mobility
In addition to the aforementioned schemes, the Ministry of Housing and Urban Affairs has launched the PM-eBus Sewa Scheme. This initiative aims to enhance city bus operations by deploying 10,000 e-buses under a Public-Private Partnership (PPP) model. The scheme provides 100% Central Assistance (CA) for the development of behind-the-meter power infrastructure and civil depot infrastructure.
Moreover, the scheme offers varying levels of financial assistance to different states. For instance, cities in hilly states and Union Territories (UTs) with legislatures receive 90% CA, while capital cities of UTs without legislatures receive 100% assistance. This targeted approach ensures that the most challenging regions receive the necessary support to implement electric bus services effectively.
Under the PM-eBus Sewa Scheme, operational support is provided on a per-kilometer basis for a period of 10 years or until March 2037, whichever comes first. The operational support rates are ₹24, ₹22, and ₹20 per kilometer for standard (12m), midi (9m), and mini (7m) buses, respectively. This financial backing is crucial for ensuring the viability of electric bus operations, making it easier for cities to transition to cleaner public transport options.
Financial Overview and Future Prospects
The financial details of the funds sanctioned and released under the PM-eBus Sewa Scheme reveal the government’s commitment to promoting electric mobility. Various states have received significant allocations, with Maharashtra leading the way with ₹347.94 crores sanctioned and ₹200.18 crores released. Other states like Bihar, Gujarat, and Madhya Pradesh also received substantial funding, highlighting the government’s focus on enhancing electric bus infrastructure across the country.
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