Govt. Launches PM e-Bus Sewa PSM Scheme With an Outlay of INR 3,435.33 Crore
PM-eBus Sewa-Payment Security Mechanism (PSM) scheme will support the deployment of more than 38,000 electric buses from FY 2024-25 to FY 2028-29 by public transport authorities with an outlay of INR 3,435.33 crore.
September 12, 2024. By EI News Network
This scheme will support the deployment of more than 38,000 electric buses (e-Buses) from FY 2024-25 to FY 2028-29. 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 run on diesel/CNG, causing adverse environmental impacts. On the other hand, e-buses are environmentally friendly and have lower operational costs. However, it was anticipated that PTAs would find it challenging to procure and operate e-buses because of their high upfront cost and lower realisation of revenue from operations.
To address the high capital cost of e-buses, PTAs induct these buses through the Public Private Partnership on the Gross Cost Contract (GCC) model. The PTAs are not required to pay the upfront cost of the bus under the GCC model, instead OEMs/operators procure and operate e-buses for PTAs with monthly payments. However, OEMs/operators are hesitant to engage in this model due to concerns about potential payment defaults.
The scheme addresses this concern by ensuring timely payments to OEMs/operators through a dedicated fund. In case of default of payments by PTAs, CESL, the implementing agency, shall make necessary payments from the scheme funds which will be later recouped by the PTAs/State/UTs.
This initiative seeks to facilitate the adoption of e-buses by encouraging private-sector participation. The scheme will also lead to significant reductions in greenhouse gas emissions and reduce the consumption of fossil fuels. The scheme will provide benefits to all public transport authorities present in State/UTs who opt for the scheme.
please contact: contact@energetica-india.net.
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