Cabinet Approves ₹576 Billion Program to Boost Urban Electric Mobility

The deployment of around 10,000 e-buses is projected to create up to 55,000 direct jobs


In a move towards promoting sustainable urban transportation and economic growth, the Union Cabinet has approved the “PM-eBus Sewa” program, under which  10,000 electric buses (e-buses) will be deployed across the nation.

The program will have a budget of ₹576.13 billion (~$6.9 billion).

The PM-eBus Sewa program focuses on cities with a population of 300,000 and above per the 2011 census, encompassing all union territory capitals, the northeastern region, and the hilly states.

It seeks to provide e-bus services to cities currently lacking such infrastructure.

By extending its reach to areas previously underserved by public transportation, the program aims to bridge the urban-rural mobility gap and enhance connectivity and accessibility for all citizens.

The PM-eBus Sewa can potentially create 45,000 to 55,000 direct jobs in city bus operations.

Segment A: Augmenting City Bus Services

Under the program, Segment A focuses on augmenting city bus services in 169 cities through a Public Private Partnership (PPP) model.

The program is not limited to introducing e-buses alone but also encompasses the essential infrastructure required for their operation.

This includes the development and upgradation of depot infrastructure and the creation of behind-the-meter power infrastructure, such as substations, to support the charging and functioning of e-buses.

Segment B: Green Urban Mobility Initiatives

Segment B of the program– Green Urban Mobility Initiatives (GUMI) — encompasses a range of sustainable and eco-friendly measures to enhance urban mobility. These include:

Bus Priority Infrastructure: The program envisages the creation of bus priority lanes, reducing traffic congestion and ensuring efficient and timely transportation.

Multimodal Interchange Facilities: Integrated transport facilities that seamlessly connect different modes of transportation, encouraging the use of public transit and reducing private vehicle usage.

Automated Fare Collection Systems: Implementation of National Common Mobility Card (NCMC)-based systems for automated fare collection, simplifying the payment process for commuters.

Charging Infrastructure: The program supports the development of charging infrastructure for e-buses, a crucial component in promoting electric mobility.

Driving E-Mobility and Sustainability

At its core, the program aims to accelerate the adoption of e-mobility, promoting cleaner and more sustainable urban transportation.

As a result, cities are expected to experience reduced noise and air pollution and decreased carbon emissions.

The push towards a resilient supply chain for EVs and the economies of scale achieved through aggregated procurement is also expected to drive down costs and further encourage the adoption of e-buses.

The second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program carries a subsidy corpus of ₹55 billion (~$665.42 million). The FAME II program, which will be in force until 2024, provides subsidies for purchasing all types of electric vehicles.

Recently, the bidding process managed by Convergence Energy Service Limited noted that e-buses have emerged as the most economically viable solution for urban public transportation, with or without the need for subsidies.


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