The Central government is preparing a new incentive framework worth up to Rs 20,000 crore to encourage private bus operators to switch to electric buses.
According to a MoneyControl report, the proposed private e-bus de-risking framework will initially run for five years, with the possibility of a two-year extension depending on its progress and impact.
“The government is working on a private e-bus de-risking framework. At present, incentives for electric buses are largely meant for State Road Transport Undertakings. Now, a similar framework is being prepared for private bus operators as well,” a source was quoted as saying.
The proposal represents a major policy shift, as nearly 87 per cent of India’s bus fleet is owned by private operators, while State Road Transport Undertakings (SRTUs) account for only around 13 per cent.
The proposed package is expected to combine financial and administrative support. Measures under consideration include interest subvention, viability gap funding and other financing mechanisms designed to improve access to affordable credit for fleet operators investing in electric buses.
Charging infrastructure is unlikely to be covered, as separate government programmes already support charging network expansion.
