Centre seeks proposals on 5,000 electric buses, electrification of transport on priority list of Government

The Department of Heavy Industry has invited Expression of Interest (EoI) seeking proposals for availing incentives under the Fame Scheme Phase II for deploying 5,000 electric buses on operational-cost-model basis across select cities.

The focus of the scheme is to encourage electrification of public and shared transportation.

Under the phase II of Fame, the Government intends to support about 7,000 e-buses with a total outlay of ₹3,500 crore by extending demand incentives for deployment of electric buses using operational cost model to be adopted by State and City Transport Corporations.

“The main intention of extending demand incentive for electric buses is to reduce the upfront capital cost of such electric buses,” the EoI said.

The document showed that this time the state departments will have to call bids under the wet-lease model from companies, under which companies will own and operate the buses and quote a per-km price.

While bidding, the companies will have to take into account all expenses like the purchase cost of vehicles as well as cost of operation, electricity, drivers, management of fleet, charging infrastructure, replacement of battery, maintenance of vehicle, etc. The operator who quotes the lowest rate will be the selected bidder, the document said.