CABINET APPROVES RS 3,435 CRORE SCHEME FOR PROCUREMENT, OPERATION OF PUBLIC ELECTRIC BUSES

The Union Cabinet has approved a scheme for the procurement and operation of e-buses by Public Transport Authorities (PTAs) with an outlay of Rs 3,435.33 crore.

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The scheme called "PMeBus Sewa-Payment Security Mechanism (PSM)" will support the deployment of more than 38,000 electric buses (e-Buses) from 202425 to 2028-29, a release said.

The scheme will support the operation of e-buses for a period of up to 12 years from the date of deployment. At present, the majority of buses operated by Public Transport Authorities (PTAs) run on diesel/ CNG, causing adverse environmental impacts.

On the other hand, ebuses are environmentally friendly and have lower operational costs. However, it was anticipated that Public Transport Authorities (PTAs) would find it challenging to procure and operate e-buses because of their high upfront cost and lower realisation of revenue from operations.