Govt looks to ease funding blues for private e-bus fleets

Private sector's e-bus financing may be routed through Sidbi, Nabard as lenders remain wary

- Manas Pimpalkhare & Rituraj Baruah

As per officials, the proposed scheme is being finalized by the ministry of heavy industries and is likely to be rolled out in the next six to twelve months.

(AFP)

As private electric bus operators struggle to secure affordable credit, the government is working on a new financing scheme that could lower their borrowing costs by routing funds through the Small Industries Development Bank of India (Sidbi) and the National Bank for Agriculture and Rural Development (Nabard), according to two government officials aware of the development.

The development comes amid heightened lender caution over the electric vehicle (EV) industry for the past one year, following the collapse of electric cab company BluSmart.

As per the officials, the scheme is being finalized by the heavy industries ministry and is likely to be rolled out in the next 6-12 months. It seeks to address one of the key bottlenecks in India’s e-bus transition: the high cost of capital for private operators, who run nearly 90% of the country’s 2 million buses.