Govt. of India approves PM-eBus Sewa and PM E-DRIVE schemes to boost E-mobility

New Delhi, India (Urban Transport News): In a significant boost to India's push towards sustainable transportation, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved two landmark schemes aimed at accelerating the adoption of electric vehicles (EVs) across the country. These initiatives are the “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme” and the “PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme.” Both schemes are set to transform public and private transport sectors with substantial financial backing and policy support.

PM-eBus Sewa-Payment Security Mechanism (PSM) Scheme

The “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme” is a pioneering initiative designed to facilitate the procurement and operation of electric buses by Public Transport Authorities (PTAs). With an impressive outlay of ₹3,435.33 crore, the scheme will support the deployment of over 38,000 e-buses from the fiscal year 2024-25 to 2028-29. These e-buses will be operational for up to 12 years from their deployment date.

Shri H. D. Kumaraswamy, Union Minister for Heavy Industries & Steel, emphasized that the current reliance on diesel and CNG buses results in significant environmental damage. The new scheme addresses the high initial costs of e-buses, which have been a major deterrent for PTAs. Under this scheme, PTAs can procure e-buses through a Public Private Partnership (PPP) model with a Gross Cost Contract (GCC), which alleviates the burden of upfront costs.

The PSM scheme includes a dedicated fund to ensure timely payments to Original Equipment Manufacturers (OEMs) and operators. If PTAs default on payments, the implementing agency, Convergence Energy Services Limited (CESL), will cover the costs from the scheme’s funds, which will later be reimbursed by the PTAs or respective state/UT governments.

This initiative is poised to drive a significant reduction in greenhouse gas emissions and fossil fuel consumption by encouraging the use of environmentally friendly e-buses.

PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme

The “PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme” is another critical development, approved with a substantial budget of ₹10,900 crore over two years. This scheme aims to accelerate the adoption of electric mobility across various vehicle categories, including two-wheelers, three-wheelers, and trucks, while also expanding the charging infrastructure.

Key features of the PM E-DRIVE Scheme include:

• Subsidies and Incentives: The scheme allocates ₹3,679 crore to incentivize the purchase of e-two-wheelers (e-2Ws), e-three-wheelers (e-3Ws), e-ambulances, and e-trucks. It aims to support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.

• E-Vouchers: To streamline the buying process, MHI will introduce Aadhaar-authenticated e-vouchers for EV buyers. These vouchers, generated through a scheme portal, will facilitate the claiming of demand incentives and must be signed by both the buyer and the dealer.

• E-Ambulances: The scheme includes ₹500 crore for deploying e-ambulances, marking a significant step towards integrating electric vehicles into the healthcare sector. Performance and safety standards for these vehicles will be established in collaboration with relevant stakeholders.

• E-Buses: With an allocation of ₹4,391 crore, the scheme will support the procurement of 14,028 e-buses by State Transport Undertakings (STUs) and public transport agencies. Priority will be given to buses purchased as replacements for older models.

• E-Trucks: ₹500 crore has been set aside to incentivize the deployment of e-trucks, addressing air pollution from conventional trucks. Incentives will be provided to those who present a scrapping certificate from approved vehicle scrapping centers.

• Charging Infrastructure: To tackle range anxiety, the scheme proposes the installation of 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for e-buses, and 48,400 fast chargers for e-two-wheelers and e-three-wheelers. An outlay of ₹2,000 crore has been allocated for this purpose.

• Testing Infrastructure: With ₹780 crore dedicated to enhancing vehicle testing infrastructure, the scheme aims to upgrade testing agencies to accommodate new and emerging EV technologies.

The PM E-DRIVE Scheme is designed to bolster India’s electric vehicle ecosystem by promoting the adoption of EVs, reducing environmental impact, and improving air quality. By incentivizing EV purchases and expanding charging infrastructure, the scheme supports the government's vision of a greener and more sustainable transportation sector.

Both the PM-eBus Sewa and PM E-DRIVE schemes represent pivotal steps towards India's green mobility goals, offering financial incentives and structural support to accelerate the transition to electric transportation. These initiatives are expected to drive substantial investment in the EV sector, enhance public transportation, and contribute to a cleaner environment.