NEW DELHI, October 17 — The Union Cabinet approved a fresh ₹5,800 Crore capital allocation on Saturday to accelerate the deployment of 5,000 zero-emission electric buses under the flagship 'PM-eBus Sewa' initiative across 65 secondary urban agglomerations.
Operating on a Public-Private Partnership (PPP) concessionaire model, the centrally supported scheme specifically targets cities with populations ranging from 3 lakh to 40 lakh that have historically lacked organized mass bus transit infrastructure. Under the operational structure, original equipment manufacturers (OEMs) and private transit operators will supply and maintain the e-bus fleet while city municipal corporations manage fare collection and route schedules.
The Ministry of Housing and Urban Affairs stated that the approved outlays include dedicated capital grants for behind-the-meter high-voltage electrical sub-stations, depot civil works, and smart depot charging equipment over 10-to-12-year concession cycles, mitigating municipal air particulate pollution and reducing diesel import dependence.
The institutional framework of PM-eBus Sewa (launched in August 2023 with a 10,000 e-bus target), faster adoption milestones under FAME India I and II, National Urban Transport Policy (NUTP 2006), and decarbonisation targets under Nationally Determined Contributions (NDCs) represent critical topics across UPSC Environment and Urban Development modules.