Observed Policies/Schemes

Govt to procure 5,585 electric buses for public transport under FAME scheme

Public transport
Public transport

The government has approved 5,595 electric buses in 64 cities for intracity and intercity functions under the 2nd phase of Faster Adoption and Manufacture of (Hybrid and) Electric Vehicles (FAME) India policy to accelerate for clean mobility in public transportation, an official release stated on Thursday.

Expression of Interest (EoI) from cities with a million-plus population, State or Union Territory (UT) capitals, smart cities, and special category States for submission of proposal for deployment of electric buses on an operational cost basis, the Ministry of Heavy Industries and Public Enterprises had called.

The Department of Heavy Industry got 86 proposals from 26 States or UTs for the deployment of 14,988 e-buses during the process.

On the advice of PISC (Project Implementation and Sanctioning Committee) after the evaluation of these proposals as per EoI, the government-sanctioned 400 electric buses for intercity operation, 100 electric buses for last-mile connectivity to Delhi Metro Rail Corporation (DMRC), and 5,095 electric buses to 64 cities or State transport corporations for intra-city operation, an official release stated.

Each selected city or STUs (State transport undertaking) is now required to initiate the procurement process in a time-bound manner for the deployment of sanctioned electric buses on an operational cost basis, it added.

As per EoI, buses that satisfy required localization level and technical eligibility notified under FAME India scheme phase II would be eligible for funding under FAME India scheme phase II, the release added.

The buses are expected to run about four billion kilometers during their contract period and are expected to save cumulatively about 1.2 billion liters of fuel over the contract period, which will result into avoidance of 2.6 million tonnes of CO2 emission.

The government has unveiled numerous initiatives to encourage the use of electric vehicles, which include subsidy and tax incentives. Recently, the government announced a Goods and Services Tax (GST) reduction for electric vehicles, charger, and charging stations.

The 36th GST Council recommended a reduction of GST rate on all-electric vehicles from 12 percent to five percent. Also, the GST rate on the charger/charging stations for electric vehicles was reduced from 18 percent to five percent.