Modi government plans ₹12,000cr incentive scheme to promote electric buses
What's the story
The Indian government is working on a major incentive scheme, possibly worth ₹12,000 crore, to promote the adoption of electric buses by private fleet operators, as per ET. The proposed plan could include interest subvention, partial credit guarantees, and capital subsidies. The aim is to encourage the deployment of 50,000 electric buses over a decade and unlock substantial private investment in this sector.
Incentives breakdown
Proposed scheme to include toll waivers, registration fee exemptions
The proposed scheme is also likely to include toll waivers and exemptions from vehicle registration fees. A senior official told ET that a final decision on the scheme and its incentives will be taken soon. The partial credit guarantee would de-risk lending by banks while interest subvention could lower financing costs by 3-5%, encouraging wider adoption of electric buses.
Investment projection
Scheme aims to unlock private investment in electric bus sector
The government hopes the scheme will unlock ₹70,000 crore-₹80,000 crore of private investment in the electric bus sector. The proposed scheme is similar to the PM E-Drive program which incentivizes electric bus purchases by government entities for 13,800 buses. Another 10,000 electric buses have been approved under the PM e-Bus Sewa scheme aimed at accelerating adoption through a payment security mechanism.
Previous initiatives
Union Cabinet approved ₹9,585cr scheme for cleaner mobility in Delhi
Earlier this month, the Union Cabinet approved a two-year, ₹9,585 crore scheme to curb air pollution in Delhi and surrounding areas while promoting cleaner mobility. The scheme will be funded through the National Capital Region Planning Board and is expected to benefit some 207,000 vehicle owners, including 191,000 truck owners and 16,329 bus owners across the National Capital Region.