In Transitioning to Electric Buses
Challenges:
High upfront costs and perceived risks make financing electric buses difficult for private operators.
Current schemes primarily support public transport, leaving private operators without incentives.
Insufficient charging facilities for the majority of private bus operators, who have small fleets.
Establishing charging stations is costly, making it economically unviable for many private operators
Opportunities
Offering interest subsidies and longer loan terms could ease financial burdens.
Shared Charging Infrastructure: Developing public charging stations in urban areas and along key routes can facilitate adoption.
Battery-as-a-Service (BaaS): This model could lower costs by separating battery ownership from vehicle ownership, similar to successful implementations in China and Kenya
What is FAME and PM E-DRIVE?
FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles):
A national scheme that provides financial incentives for electric vehicle adoption in India.
It supports public transport with subsidies for electric buses, encouraging the shift to cleaner vehicles.
Under FAME I, from 2015-19, 425 buses received approval for purchase subsidies, which rose to 7,120 buses under FAME II, which ran from 2019-24.
PM E-DRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement):
A recently approved scheme that allocates ₹4,391 crore for subsidies and demand incentives to promote electric vehicles
It included funding for 14,028 electric buses and 1,800 charging stations in nine cities, primarily focusing on strengthening public transport.
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