PM-eBus Sewa scheme

Why is in news?

In a move to promote green mobility across, the Union Cabinet on Wednesday approved the PM-eBus Sewa scheme for operation of 10,000 electric buses in 100 cities, with priority to those without an organised bus service. Hailing the scheme, Prime Minister said it will “redefine urban mobility”.

It will strengthen our urban transport infrastructure. Prioritising cities without organised bus services, this move promises not only cleaner and efficient transport but also aims to generate several jobs,” he tweeted.

About the scheme:

Under PM-eBus Sewa Scheme, 10,000 e-buses will be deployed across cities in the country.

Under this scheme, city bus operations will be done on Public Private Partnership (PPP) model.

This scheme will support bus operations for 10 years.

States/Cities shall be responsible for running the bus services and making payments to the bus operators.

The Central Government will support these bus operations by providing subsidy to the extent specified in the proposed scheme.

Funding:

It has been allocated a total funding of Rs 57,613 crore. Out of this financial provision, the central government will contribute Rs 20,000 crore, while the remaining portion will be covered by the state governments.

The scheme will cover cities with 3 lakhs and above population and priority will be given to cities not having organised bus services.

There are two segments of the scheme: Segment A - Augmenting the city bus services: (169 cities) and Green Urban Mobility initiatives(181 cities).

Augmenting the city bus services:

Under this, the e-buses will operate under the PPP model and the government will help develop associated infrastructure to provide support for development/upgradation of depot infrastructure.

It will also help cities create behind-the-meter power infrastructure for the e-buses.

Green Urban Mobility initiatives:

Bus rapid transport projects would be developed along with non-motorised infrastructure like bike sharing, bicycle lanes.

Innovative projects like National Common Mobility Card, Intelligent Transit Management System, Multimodal Interchange facilities would also be developed.

Boost to E-Mobility:

The scheme will promote e-mobility and provide full support for behind-the-meter power infrastructure.

Cities will also be supported for development of charging infrastructure under Green Urban Mobility Initiatives.

The support to bus priority infrastructure shall not only accelerate the proliferation of state-of-the-art, energy efficient electric buses but also foster the innovation in the e-mobility sector as well as development of resilient supply chain for electric vehicles.

This scheme shall also bring in economies of scale for procurement of electric buses through aggregation for e-buses.

Adoption to Electric mobility will reduce noise and air pollution and curb carbon emission.

Modal shift due to increased share of bus-based public transportation will lead to GHG reduction.

Public Private Partnership (PPP) model:

The Public-Private Partnership (PPP) model is a collaborative approach to project development and service delivery in which both public and private sector entities work together to achieve common goals.

PPPs involve the sharing of resources, risks, responsibilities, and rewards between the government (or public sector) and private sector organizations.

This model is commonly used to undertake and manage projects or services that require substantial investment, expertise, and efficient management.

Other measures of Government for Green Mobility:

Faster Adoption and Manufacturing of Hybrid and Electric Vehicles is a government scheme, which provides incentives for the purchase of EVs and the installation of charging infrastructure.

National Electric Mobility Mission Plan was launched in 2020, which aims to have at least 30% of vehicles on Indian roads be electric by 2030.

The Government has announced plans to provide an additional income tax deduction of INR 1.5 Lakh on the interest paid on loans taken to purchase electric vehicles.

The government has announced a Production Linked Incentive (PLI) scheme to boost domestic manufacturing and attract global companies to invest in the Indian market.

The Government also plans to set up a National Technical Textiles Mission (NTTM) to promote the use of technical textiles in various sectors, including the EV industry.

Setting up of battery manufacturing units in India to promote the use of electric vehicles. In September 2019, a consortium was formed by Japanese automobile Suzuki Motor to set a manufacturing unit in Gujarat for producing lithium-ion batteries & electrodes.

These policies are embedded with the vision to have 30% electric vehicles plying the roads by 2030.

The government has also identified last-mile mobility as a key sector to drive the adoption of electric vehicles E.g., deployment of a fleet of over 5,000 vehicles in Chennai.

Phased Manufacturing Programme (PMP): Indigenous manufacturing of electric vehicles, their assemblies/sub-assemblies, and parts/sub-parts/inputs of the sub-assemblies to be promoted over time through a graded duty structure.

National Mission on Transformative Mobility and Storage: Government aims to drive strategies for transformative mobility and Phased Manufacturing Programmes for electric vehicles, electric vehicle Components and Batteries.

Conclusion:

In an attempt to leverage the potential of e-vehicles, the Indian Government needs to provide more incentives and subsidies for the purchase of EVs, invest in charging infrastructure and battery technology, and promote domestic manufacturing capabilities for electric vehicles and their components.

Overall, electric vehicles offer a cleaner, more efficient, and cost-effective alternative to traditional gasoline-powered vehicles, and with the right infrastructure and policies in place, they can play a major role in reducing air pollution and greenhouse gas emissions while improving energy independence.