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Govt. of India launches ₹57,613 crore "PM-eBus Sewa" Scheme

New Delhi, India (16 August 2023): The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given the green light to the "PM-eBus Sewa" scheme, aimed at enhancing city bus operations by deploying 10,000 electric buses on a Public-Private Partnership (PPP) model. This ambitious scheme is estimated to cost Rs. 57,613 crore, with central assistance of Rs. 20,000 crore.

Key Highlights of the PM-eBus Sewa Scheme

Scope: The scheme is designed to support bus operations for a duration of 10 years and will encompass cities with a population of three lakh and above, as per the 2011 census. It includes all capital cities of Union Territories, cities in the North Eastern Region, and hill states. Priority will be given to cities lacking organized bus services.

Employment Generation: The scheme is expected to generate between 45,000 to 55,000 direct jobs through the deployment of around 10,000 e-buses.

PM-eBus Sewa Scheme (in Numbers)

  • 10,000 e-Buses in 169 Cities
  • Cities with 3 Lakhs and above population to be covered
  • Total Cost: Rs 57,613. Of which, Central Govt. to provde Rs 20,000.
  • Support will be given for 10 years
  • Scheme will create 45000-55000 direct jobs
  • Coverage: All Capitals, Cities in UTs, NE Region and Hill States

Segments of the Scheme

Segment A - Augmenting City Bus Services (169 Cities): This segment focuses on augmenting city bus operations with 10,000 e-buses under a PPP model. Associated infrastructure will support the development and upgrading of depot infrastructure and the creation of behind-the-meter power infrastructure (substation, etc.) for e-buses.

Segment B - Green Urban Mobility Initiatives (181 Cities): This segment emphasizes green initiatives, including bus priority measures, infrastructure development, multimodal interchange facilities, NCMC-based Automated Fare Collection Systems, and charging infrastructure.

Support for Operation: States and cities will be responsible for running the bus services and making payments to the bus operators. The Central Government will provide subsidies as specified in the proposed scheme to support these bus operations.

Boost to E-Mobility:The scheme aims to promote e-mobility by providing full support for behind-the-meter power infrastructure.

Cities will receive support for the development of charging infrastructure under the Green Urban Mobility Initiatives.

The scheme is expected to accelerate the adoption of energy-efficient electric buses, stimulate innovation in the e-mobility sector, and bolster the development of a resilient supply chain for electric vehicles.

It will also enable economies of scale in the procurement of electric buses through aggregation for e-buses.

The transition to electric mobility will contribute to reduced noise and air pollution while curbing carbon emissions, aligning with efforts to combat climate change by encouraging a modal shift towards bus-based public transportation, leading to greenhouse gas reduction.