Minister acknowledges challenges of procuring e-Busses
More than 38,000 electric buses (e-Buses) will be deployed from FY 2024-25 to FY 2028-29 under a recently approved Rs.3,435.33 crore scheme to support the operation of e-buses for a period of up to 12 years from the date of deployment.
Minister for Heavy Industries & Steel H. D. Kumaraswamy told reporters on 12 Sept during briefing on the “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme”, acknowledging the challenge of procuring the e-vehicles.
He conceded that Public Transport Authorities (PTAs) would find it challenging to procure and operate e-buses because of their high upfront cost and lower realization of revenue from operations.
To address the high capital cost of e-buses, PTAs will induct these buses through Public Private Partnership on Gross Cost Contract (GCC) model. The PTAs are not required to pay the upfront cost of the bus under the GCC model, instead OEMs and operators procure and operate e-buses for PTAs with monthly payments.
However, OEMs and operators are hesitant to engage in this model due to concerns about potential payment defaults, the minister conceded.
The scheme addresses this concern by ensuring timely payments to OEMs and operators through a dedicated fund. In case of default of payments by PTAs, CESL, the implementing agency, shall make necessary payments from the scheme funds which will be later recouped by the PTAs/State/UTs.
This initiative seeks to facilitate adoption of e-buses by encouraging private sector participation. The scheme will also lead to significant reductions in greenhouse gas emissions and also reduce the consumption of fossil fuel. The scheme will provide benefits to all PTAs present in State/UTs who opt for the scheme.
He said that, at present, the majority of buses operated by run on diesel/CNG, causing adverse environmental impact. On the other hand, e-buses are environment friendly and have lower operational cost.
Further, the Minister apprised the media that the Cabinet has also approved the proposal for implementation of scheme titled ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ for promotion of electric mobility in the country. The scheme has an outlay of Rs.10,900 crore over a period of two years.
It was also informed by the Minister that subsidies/demand incentives worth Rs.3,679 crore have been provided to incentivize e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.
MHI is introducing e-vouchers for EV buyers to avail demand incentives under the scheme. At the time of purchase of the EV, the scheme portal will generate an Aadhaar authenticated e-Voucher for the buyer. A link to download the e- voucher shall be sent to the registered mobile number of the buyer.
This e-voucher will be signed by the buyer and submitted to the dealer to avail demand incentives under the scheme. Thereafter, the e-Voucher will also be signed by the dealer and uploaded on the PM E-DRIVE portal. The signed e- voucher shall be sent to the buyer and dealer through an SMS. The signed e-voucher will be essential for OEM to claim reimbursement of demand incentives under the scheme.
The scheme allocates Rs.500 crore for the deployment of e-ambulances. This is a new initiative of Government to promote the use of e-ambulance for a comfortable patient transport. The performance and safety standards of e-ambulances will be formulated in consultation with Ministry of Health and Family Welfare, Ministry of Road Transport and Highways and other relevant stakeholders.
A sum of Rs.4,391 crore has been provided for procurement of 14,028 e-buses by State Transport Units and public transport agencies. The demand aggregation will be done by Convergence Energy Services Limited (CESL), in the nine cities with more than 40 lakh population namely Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune and Hyderabad. Intercity and Interstate e-buses will also be supported in consultation with states. CESL is a wholly owned subsidiary of Energy Efficiency Services Limited (EESL).
While allocating buses to cities/states, first preference shall be given to those number of buses of cities/states, which are being procured after scrapping old STU buses, through authorised scrapping centres (RVSFs) following the MoRTH Vehicle Scrapping Scheme guidelines.
The trucks are a major contributor to air pollution. The scheme will promote the deployment of e-trucks in the country. Rs.500 crore has been allocated for incentivising e-trucks. Incentives will be given to those who have a scrapping certificate from MoRTH approved vehicles scrapping centres (RVSF).
The scheme addresses range anxiety of EV buyers by promoting in a big way the installation of electric vehicle public charging stations (EVPCS). These EVPCS shall be installed in the selected cities with high EV penetration and also on selected highways. The scheme proposes the installation of 22,100 fast chargers for e- 4 Ws, 1,800 fast chargers for e-buses and 48,400 fast chargers for e- 2W/3Ws. The outlay for EV PCS will be Rs.2,000 crore. Fiinews.com
