NEW DELHI : The Centre is considering shifting its financial assistance for adoption of electric vehicles (EVs) toward public transport such as e-buses. The support for purchase of private electric two-wheelers may be gradually phased out, said a person in the know of the developments. “There is a view that the subsidies should gradually be phased out for private two-wheelers and assistance should go for public transport and charging infrastructure," the person added.
The proposal comes at a time EVs have by and large penetrated the two-wheeler segment, while electric buses are yet to gain momentum. The ongoing FAME II scheme was started on 1 April 2019, with budgetary support of ₹ 10,000 crore. This phase focuses on supporting electrification of public and shared transportation and aims to support 7,090 buses, 500,000 three-wheelers, 55,000 passenger cars and 1 million two- wheelers through demand incentivization along with the creation of charging infrastructure.
The scheme has been extended till March 2024. As of 1 August 2023, the ministry of heavy industries had sanctioned 6,315 electric buses for 65 cities, state transport units or state governments intracity operations. Another 753,140 two-wheelers, 85,168 three-wheelers and 9,270 four-wheelers have sold under the scheme, according to data presented by Krishan Pal Gurjar, in the union minister of state for heavy industries, Parliament.
Data from the ministry showed that in FY23, only 1.88% of buses sold in the country were EVs. In May, the ministry increased the funding support for e-buses to ₹4,307 crore from the budgeted ₹3,545 crore. Further, the union cabinet last week approved a bus scheme, the PM-eBus Sewa, for augmenting city bus operations by 10,000
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