Image: TATA power
India is set to roll out a plan to deploy 100,000 electric buses over the next five years as part of an initiative aimed at improving urban transportation and reducing pollution in major cities.
As reported by *The Economic Times*, the Indian government intends to launch the 'Bharat Urban Megabus Mission' in 2025, targeting cities with populations exceeding one million by March 2030. Currently, India has around 65 cities that fit this criterion, with projections indicating that number could rise to between 75 and 80 in the near future, according to research from SBI.
The initiative is designed to promote public transport usage over private vehicles, which could help mitigate congestion and air quality issues. The government aims for public transport to represent 60% of all motorized trips by 2030, increasing that figure to 80% by 2036. Furthermore, it hopes that non-motorized travel (like walking and cycling) will constitute at least 50% of all urban travel by 2030.
The Bharat Urban Megabus Mission will require an investment of 1.75 lakh crore Indian rupees (around 19.24 billion euros). Of this, 80,000 crore Indian rupees (approximately 8.8 billion euros) is allocated for viability gap funding to support electric bus operations for five years, while 45,000 crore Indian rupees (about 5 billion euros) will fund necessary infrastructure, including bus stops, terminals, and depots. Additionally, part of the budget will go toward developing over 5,000 kilometers of cycling paths and pedestrian walkways.
A senior official from the Ministry of Housing & Urban Affairs noted that the goal is to make public transportation the preferred choice and to promote walking and cycling as appealing alternatives. The initiative also aims to lower air pollution and enhance public health. To support this effort, the government is considering reducing the Goods and Services Tax on bicycles priced under 10,000 Indian rupees (approximately 110 euros) from 12% to 5%, as reported by the Press Trust of India.
In a related development, India's Ministry of Heavy Industries launched the PM E-Drive scheme on October 1 to encourage the adoption of electric buses and other electric vehicles. Under this scheme, state transport organizations and public transport agencies will receive a subsidy of 4,391 crore Indian rupees (around 483 million euros) to help procure 14,028 electric buses by March 2026, with a standardized subsidy of 10,000 Indian rupees (approximately 110 euros) per kWh for models priced below 2 crore Indian rupees (about 220,000 euros).
Original News Website:
electrive.com,economictimes.indiatimes.com (original paywalled report),
economictimes.indiatimes.com (free copy published later on the auto division of ET),
pib.gov.in, sbi.co.in, ptinews.com, heavyindustries.gov.in (PDF)