The Union Cabinet, led by Prime Minister Narendra Modi, has approved the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme with a budget of INR 3,435.33 crore. This plan supports the deployment of electric buses (e-buses) across Indian cities to promote clean transportation. The scheme will be active from FY 2024-25 to FY 2028-29.
Objective of the PM-eBus Sewa Scheme
The primary goal of the PM-eBus Sewa scheme is to deploy over 38,000 electric buses. These buses will run for up to 12 years from the time they are launched, helping reduce pollution and dependence on fossil fuels. The scheme operates on a Public Private Partnership (PPP) model. Under this model, Public Transport Authorities (PTAs) do not have to pay the high initial costs for the buses. Instead, Original Equipment Manufacturers (OEMs) and bus operators will manage and fund the e-buses. Payments will be made to them on a monthly basis under a Gross Cost Contract (GCC).
Payment Security Mechanism
A dedicated fund, managed by Convergence Energy Services Limited (CESL), will ensure the security of payments. If any PTA defaults on payments, CESL will step in to cover the costs. Later, these amounts will be recovered from the states or Union Territories responsible for the payment defaults.
Benefits of the PM-eBus Sewa Scheme
By switching from diesel or CNG buses to electric buses, India will significantly reduce its greenhouse gas emissions. This step will help lower pollution levels in urban areas and reduce the country’s reliance on fossil fuels. The initiative is in line with the government’s vision of an Atmanirbhar Bharat (Self-Reliant India).
Related Initiative: FAME-III Scheme
Alongside the scheme, the Cabinet has also approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme. With a budget of INR 10,900 crore, this scheme aims to support the adoption of electric two-wheelers, three-wheelers, electric buses, trucks, ambulances, and public charging stations. This initiative will help grow India’s electric vehicle market further.
Global Impact of Electric Buses
The PM-eBus Sewa scheme can positively impact international markets by promoting cleaner transport options and helping India become a global leader in green technology. The reduced use of fossil fuels will support global efforts to limit climate change. India’s large-scale adoption of electric buses might encourage other countries to follow suit, increasing demand for eco-friendly vehicles.
Aims and Motivations Behind the PM-eBus Sewa Scheme
The main goal of this scheme is to promote sustainable transportation. India is working to reduce pollution in cities and shift towards greener options. The scheme helps meet the increasing public demand for efficient and eco-friendly transportation systems. At the same time, it offers financial security to operators and states through the Payment Security Mechanism.
PM-eBus Sewa Scheme – Key Points
- Budget: INR 3,435.33 crore for the deployment of 38,000 electric buses.
- Timeline: FY 2024-25 to FY 2028-29.
- Model: Public Private Partnership (PPP) with a Gross Cost Contract (GCC).
- Security: A dedicated fund by CESL to ensure payment security.
- Environmental Impact: Reduction in fossil fuel use and greenhouse gas emissions.
- Related Scheme: PM E-DRIVE for electric two-wheelers, three-wheelers, and public charging stations.
The PM-eBus Sewa Scheme aims to deploy 38,000 electric buses to reduce pollution and promote clean transportation.
The scheme follows a Public Private Partnership model where bus operators handle procurement, and PTAs make monthly payments without upfront costs.
CESL manages the Payment Security Mechanism to prevent payment defaults and ensure smooth operations.
The scheme will help reduce greenhouse gas emissions and fossil fuel dependency, making cities cleaner.
The FAME-III scheme supports electric two-wheelers, three-wheelers, e-buses, and charging stations with a budget of INR 10,900 crore.