Urban infrastructure is set to get a major boost this year. In her budget speech on February 1, Finance Minister Nirmala Sitharaman said the government will launch a new scheme for aiding bus transport services.
“A new scheme would be launched at the cost of Rs 18,000 crore to support the augmentation of bus transport services. This scheme will facilitate deployment of PPE (public-private enterprise) models to enable private sector players to finance, acquire and maintain 20,000 buses”, Sitharaman said.
Due to the on-going COVID-19 scare and preceded by the six-week lockdown earlier in the year sales of buses witnessed a freefall so far this year. As per the Society of Indian Automobile Manufacturers (SIAM) sales of medium and heavy buses collapsed 91 percent during April-December to 2578 as against 29206 units clocked in the same period last year.
“The scheme will boost the automobile sector provide fillip to economic growth create employment opportunities and enhance ease of mobility”, Sitharaman added.
Closure of schools and offices and restriction on inter-state and intra-state public movement severely impacted the demand for buses this year.