The Union Cabinet approved the PM-eBus Sewa-Payment Security Mechanism (PSM) Scheme on 11 September 2024. Over 38,000 e-buses are set to be deployed between FY 2024-25 and FY 2028-29, with operational support for up to 12 years.
The scheme aims to assist Public Transport Authorities (PTAs) in procuring and operating electric buses (e-buses). The total financial outlay for the scheme is ₹3,435.33 crore. PTAs mostly use diesel or CNG buses, which contribute to pollution, while e-buses are cleaner but face adoption challenges due to high initial costs and lower revenue generation.
PPP model: The scheme encourages using a Public-Private Partnership (PPP) model under the Gross Cost Contract (GCC) framework, shifting the responsibility of procurement and operation to Original Equipment Manufacturers (OEMs) or operators.
