Delhi, 4 more opt for direct debit in state e-bus scheme
Bank of India (RBI) will deduct the amount from their accounts and pay it towards the payment security mechanism (PSM). “Only those states which agree to DDM will be able to participate in PSM. Some states have given consent, J&K, Chandigarh, Haryana, Punjab, Delhi.
The finance ministries of other states are considering the issue," said one of the people in the know of the developments. “We expect consent from other states, too, soon. About 15-20 states are likely to come on board," said a person privy to the development seeking anonymity.
In August, the Union cabinet had approved the ₹57,613-crore PM-eBus Sewa scheme under the public-private partnership model. The government will be contributing ₹20,000 crore towards this initiative. Under the 10-year scheme to augment city bus services, 10,000 electric buses will be deployed in 169 cities, prioritizing those lacking organized bus services.
The estimated cost for the scheme is ₹57,613 crore, with central assistance of ₹20,000 crore. States will be responsible for running the bus services and making payments to the bus operators. The central government will support the bus operations by providing a subsidy in the proposed scheme The plan for a payment security mechanism comes in the backdrop of several e-bus manufacturers not willing to take part in the bids under the ongoing FAME II scheme due to some states not paying on time.
In order to set up a robust payment system, the guidelines of the scheme envisage the creation of an escrow account, which will consist of the central assistance, state share, daily farebox and non-farebox revenue, and any other relevant sources of funds. Payment to the bus operator will be made through the escrow account. Central assistance will
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