en.Wedoany.com Reported - India's central government is drafting a plan to provide incentive support for private fleet operators to purchase electric buses, including interest subsidies, partial credit guarantees, and capital subsidies. A senior official told the Economic Times that the incentive package is valued at approximately ₹12,000 crore.

The official stated that the proposed incentives may also include exemptions from toll fees and vehicle registration charges, with a final decision expected soon. Partial credit guarantees could reduce lending risks for banks, while interest subsidies could lower financing costs by 3 to 5 percentage points, aiming to drive wider adoption of electric buses. The government targets supporting the deployment of 50,000 electric buses over 10 years, with related funds to be disbursed over the next five years. The official estimates that the scheme could stimulate private investment of ₹7,000 to ₹8,000 crore in this sector.

The proposed scheme will follow the model of the PM E-Drive programme, which supports government entities in procuring electric buses by providing demand incentives for 13,800 buses. Additionally, the PM e-Bus Sewa scheme has already approved 10,000 electric buses, promoting their adoption under a public-private partnership model through a payment security mechanism. Earlier this month, the Union Cabinet approved a two-year, ₹9,585 crore plan aimed at reducing air pollution and promoting clean mobility in the national capital and surrounding areas, funded by the National Capital Region Planning Board. The plan is expected to benefit approximately 207,000 vehicle owners in the National Capital Region, including 191,000 truck owners and 16,329 bus owners.

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