PM e-Bus Sewa scheme

Source: Financial Express
GS II: Schemes

Overview

1. News in Brief
2. About PM e-Bus Sewa scheme

Why in the News?

Government of India has announced the PM e-Bus Sewa scheme and other policies buses to see penetration of up to 13% in new bus sales by FY2025 says ICRA

News in Brief

• It estimates that e-buses will account for 11-13 percent of new bus sales by FY2025.
• The traction in the e-bus segment is already visible over the past couple of years, with e-bus volumes as well as penetration levels improving consistently, to 7 percent in FY2023.
• state policies and government schemes, the government has also sought to spur e-bus adoption through bid aggregation under tenders floated by Convergence Energy Services (CESL).

About PM e-Bus Sewa scheme

• About E-bus Scheme
  • The scheme aims to add 10,000 e-buses to city bus services across the country.
  • E-buses are those that rely exclusively on zero-emission electricity for their propulsion and accessory systems.
  • The initiative also focuses on enhancing urban infrastructure, particularly in cities without organized bus services.
• Environmental Benefits
  • The adoption of electric mobility services like e-buses will lead to reduced noise and air pollution in Indian cities.
  • The scheme’s focus on electric buses is expected to help mitigate carbon emissions and promote sustainable transportation.
• Funding
  • The scheme’s estimated cost is ₹57,613 crore.
  • The Central government will provide ₹20,000 crore, and the remaining funding will come from other sources.
  • This financial support will facilitate bus operations for a period of 10 years.
• Roles Distribution
  • States or cities will be responsible for running the bus services and making payments to bus operators.
  • The Central government will offer subsidies as specified in the scheme to support these bus operations.
• Implementation
  • The scheme will be implemented in two segments. In 169 cities, a public-private partnership (PPP) model will be utilized to deploy the 10,000 e-buses.
  • In 181 other cities, the focus will be on upgrading infrastructure under green urban mobility initiatives.
• Infrastructure 
  • For cities in the first segment, the scheme will include the development or upgrade of depot infrastructure to accommodate the new e-buses.
  • This will also involve the creation of necessary power infrastructure like substations.
• Second-tier Cities:
  • In cities falling under the second segment, the focus will be on initiatives such as improving bus priority, enhancing infrastructure, creating multimodal interchange facilities, implementing automated fare collection systems, and establishing charging infrastructure for e-buses.
• Scheme Coverage
  • The scheme will cover cities with a population of three lahks and above, including all the capital cities of Union Territories, as well as the northeastern and hill states.
• Employment and Economy
  • The scheme is expected to generate around 45,000 to 55,000 direct jobs, contributing to employment opportunities in the urban mobility sector.
  • The scheme’s widespread adoption of electric buses is likely to result in economies of scale for the procurement of these buses through aggregation.

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