Centre approves subsidy for running nearly 6,000 electric buses across 64 cities

NEW DELHI: In a big boost to electric mobility in cities, Centre has approved the proposals from state and city transport undertakings to procure nearly 5,600 electric buses including 100 for Delhi Metro Rail Corporation. The Centre will provide subsidy to the state and city transport entities, which will pass this on to the private operators they will engage through bidding and not for buying buses.
So, in the next one year or so, Delhi will get at least 300 such electric and 400 would start plying in Mumbai and Navi Mumbai. An inter-ministerial panel empowered to clear the proposals from states under FAME-II has approved 5,059 electric buses for 64 cities across the country with Maharashtra getting the maximum number buses followed by Uttar Pradesh, Gujarat and Tamil Nadu.
Majority of the most polluting big cities have been covered.
The panel has also approved 400 electric buses that will be run on inter-city routes by eight state transport undertakings. While DMRC had sought 400 buses for providing last mile connectivity, the panel has approved only 100.
The Narendra Modi government had notified the second part of FAME policy to push adoption of electric vehicles in March earmarking Rs 10,000 crore for providing demand incentive (subsidy) and to create charging facilities. IT had approved to provide financial support to about 7000 e-buses, with a total outlay of around Rs 3,500 crore. This can be available only by state or city transport undertakings (STUs).

The heavy industries department had specified which all cities would qualify under the scheme and these included all million-plus cities, smart cities as notified by urban affairs ministry, satellite towns connected to Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore and Ahmedabad. All capital cities could also participate.
Under this scheme, it’s mandatory that each bus slot will run for at least five lakhs kms during its contract period. The STUs will invite engage private operators to run the buses, similar to the orange cluster bus scheme in Delhi or wet model in Mumbai where government pays to the private fleet operators for the kilometer covered by their buses. In this case, Centre will provide subsidy to the STUs.
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