GG News Bureau
New Delhi, 12th Sept. The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme” to support the procurement and operation of electric buses (e-buses) by Public Transport Authorities (PTAs).
The scheme, with an outlay of ₹3,435.33 crore, will facilitate the roll-out of over 38,000 e-buses from FY 2024-25 to FY 2028-29.
This initiative aims to address the high upfront costs of e-buses and promote their adoption through a Public Private Partnership model under the Gross Cost Contract (GCC) model. Under this scheme, PTAs will not be required to pay the initial costs of the buses.
Instead, Original Equipment Manufacturers (OEMs) or operators will procure and operate the e-buses, with PTAs making monthly payments. The scheme includes a Payment Security Mechanism to ensure timely payments to OEMs/operators, using a dedicated fund to cover potential payment defaults by PTAs.
The PM-eBus Sewa scheme is a significant step toward achieving the Prime Minister’s vision of Atmanirbhar Bharat (self-reliant India). It will contribute to reducing pollution and protecting the environment by replacing diesel and CNG buses with eco-friendly e-buses.
The scheme also aims to reduce greenhouse gas emissions and fossil fuel consumption while encouraging private sector participation in the adoption of electric mobility.
The scheme will support the operation of e-buses for up to 12 years from the date of deployment. It will benefit all PTAs in States and Union Territories that opt to participate, marking a major milestone in advancing sustainable public transportation in India.
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