View: Need proactive policy to boost electric-powered public transport

The FAME scheme would provide a subsidy of 40% on the costs, or up to Rs 55 lakh for a standard 10-12 meter bus.

In a welcome move, the Centre has sought proposals from state transport departments for the deployment of 5,000 electric buses, under Phase-II of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, so as to boost green public transport.

We do need to purposefully curb carbon emissions in the usage of petroleum products in the transport and mobility sector nationally, especially in and around dense urban areas. It has the potential to not just improve ambient air quality but also stem growth in oil imports, and so improve our energy security.

The way forward is to have clear-cut incentives for state transport undertakings to have systems in place to improve operational transparency and realisations, for launch of the big ticket acquisitions. The FAME scheme would provide a subsidy of 40% on the costs, or up to Rs 55 lakh for a standard 10-12 meter bus. But note that the subsidy amount would be released in tranches, with the last instalment only due a full six months after the vehicles are on the road. Hence the pressing need to improve finances of the transport undertakings, so that they are in a position to avail the subsidy on offer.

Further, what’s required is installation of adequate charging facilities for the electric buses. It would make perfect sense to rev up solar-powered charging points, especially near dense urban centres, to not just step-up much-needed renewable energy read solar power, but also provide green environmentally-benign transportation right along the road.

Source: economictimes.indiatimes