New Delhi, August 22, 2023: A significant stride towards advancing electric mobility in public transportation was taken last week as the Central government greenlit the ‘PM E-Bus Seva’ scheme, aimed at deploying 10,000 new electric buses nationwide. Union Minister Anurag Thakur unveiled the scheme with an estimated budget of Rs. 57,613 crore, of which the Centre will contribute Rs. 20,000 crore while also supporting bus operations for a decade.
This move aligns seamlessly with India’s ambitious plan to introduce 50,000 electric buses within the next 5-7 years.
Beyond the promotion of electric vehicles, the scheme lays emphasis on bolstering the essential behind-the-meter power infrastructure, prioritizing bus transit systems, facilitating multimodal transfers, and implementing automated fare collection systems. It also falls in line with broader objectives to enhance air quality, reduce emissions, decarbonize the transportation sector, and make significant progress towards the climate goals that India has committed to.
Climate and mobility experts across the country have warmly welcomed the Centre’s decision. These buses, projected to carry around 6 million passengers daily, are expected to cover a total of 6 billion bus-kilometers throughout their operational lifespan. According to estimates from the World Resources Institute (WRI) India, the adoption of electric buses holds the potential to mitigate approximately 16.5 million tonnes of carbon dioxide (CO2-equivalent) emissions over a decade.
“The decarbonization of the transport sector is a crucial factor in achieving India’s ambitious goal of Net Zero by 2070. This scheme, launched during India’s G20 presidency, underscores our climate commitments. Investing in 10,000 e-buses will directly impact the quality of life and generate livelihood opportunities for the masses. The scheme will significantly enhance public transport infrastructure across over 100 cities, potentially creating up to 50,000 job openings in the transport sector. This scheme provides a robust boost to India’s objective of deploying over 50,000 electric buses by 2030. What distinguishes this scheme is its provision of viability gap funding on an operational basis, going beyond limited subsidies that may have a restricted impact in the long run,” commented Pawan Mulukutla, Director of Integrated Transport, Electric Mobility & Hydrogen at WRI India.
According to a previous study by the Indian Institute of Science, Bengaluru, even replacing a single diesel bus with an electric bus can lead to an annual reduction of 25 tonnes of CO2 emissions. This holds true even when the electric bus is powered by thermal energy for charging.
Kashmira Dubash, Senior Program Manager at ITDP India, stated, “In the face of global and national commitments to combat the climate crisis, the PM E-Bus Seva Scheme reflects a concerted effort towards a cleaner and more connected India. Notably, the initiative prioritizes cities currently lacking organized bus services, bridging gaps in urban connectivity. Furthermore, while the number of buses introduced through the Scheme is limited, it instills optimism by indicating the Centre’s inclination to reinforce India’s state-owned fleet, which presently stands at 1.4 lakh buses.”
Acknowledging the financial challenges State Transport Undertakings might encounter, the scheme has been structured to offer operational assistance to bus services for a decade.
Sanjay Sridhar, a global expert on Sustainability, Cities, and Climate Change, expressed, “The announcement of the 10,000 e-bus project by the national government is indeed excellent news. This development is aligned with the country’s decarbonization goals for the transport sector. To ensure the successful execution of this vision, the government must support State Transport Undertakings in covering the operational costs of vehicle kilometers traveled on eBuses.”
The ‘PM E-Bus Seva’ scheme has emerged as a promising initiative that could bring about a transformation in India’s public transport landscape. By championing electric mobility and investing in sustainable transport solutions, the government is making substantial strides toward a greener and more environmentally responsible future.
