India approves subsidies for 5,600 electric buses

As has been under discussion for a few weeks, the Indian government has now approved subsidies for a total of 5,595 electric buses in 64 cities of the country within the framework of the FAME II support programme.

The responsible Ministry of Heavy Energy had received 86 proposals according to its own information, the projects comprised a total of almost 15,000 electric buses. Of these, 5,595 electric buses were selected for use in said 64 cities. In addition, there are 400 buses for interstate traffic, for which eight state transport companies have received the approval of 50 buses each. The Delhi Metro Rail Corporation received a grant for 100 electric buses to connect more people to the subway.

Each of the 64 cities must purchase at least 25 electric buses. In Mumbai alone, however, 300 buses are subsidized; in the entire state of Maharashtra, there are 725 buses. Also in Delhi, Bengaluru and Ahmedabad 300 buses each were registered.

The FAME II programme (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) provides for subsidies with a total value of the equivalent of 1.4 billion dollars. According to a previously published survey, $360 million from this budget shall be used to support 5,000 electric buses. It remains to be seen whether the amount will increase, as the ministry has now approved almost 600 additional grants.

The Indian government wants to promote e-mobility, and not only in the public transport sector. At the beginning of August, VAT on electric vehicles was reduced from twelve to five per cent and on charging stations from 18 to twelve per cent. The government is also planning to allow only electric tricycles from April 2023 and two-wheelers with a cubic capacity of less than 150 cc only with an electric drive from April 2025.

cleantechnica.com, nic.in (PDF list of cities)