Govt plans electrifying interstate buses with charging infra on key routes

Nearly 1.25-1.45 million buses (mainly diesel) operate on intercity or interstate routes currently, with around 250,000 controlled by state governments

The government is aiming to introduce electric buses on long-distance routes and may offer incentives to promote their adoption, according to a report by the Economic Times. 

The new plan specifically targets interstate passenger travel. Currently, approximately 1.25-1.45 million buses operate on intercity or interstate routes, with around 250,000 controlled by state governments. These buses predominantly run on diesel, and transitioning to electric models would significantly decrease emissions, the report said.

To support this initiative, the government plans to expand charging infrastructure along highways, including fast chargers on major routes connecting urban centres. Additionally, a roadmap for assisting state governments in purchasing electric buses for long-distance operations is in development.

Citing a government official, ET noted that electric buses are viable for continuous travel of up to eight to nine hours, and incentives are being considered to facilitate their widespread use. While electric buses are currently subsidised for urban transportation under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (Fame India) Scheme, the government may introduce a similar scheme or extend the existing one to cover interstate transport.

Efforts are also underway to encourage private bus fleet operators, as well as institutional buyers such as schools and colleges, to transition to electric mobility. The official highlighted the potential for electric school buses, which typically operate for short durations within cities, to contribute to this shift and mentioned the consideration of incentives for private players to adopt electric buses.

India to replace 800k diesel buses with electric over seven years

In December last year, reports emerged that the government was devising a plan to replace 800,000 diesel buses, which make up around one-third of all buses on roads, with electric ones over the next seven years.

The replacement strategy was to involve deploying 200,000 electric buses for state transport undertakings (STUs), 550,000 for private operators, and 50,000 for schools and employee transportation by 2030.

What is the Fame India scheme?

The Ministry of Heavy Industries initiated the Fame India scheme in 2015. In 2019, the scheme received funding of Rs 10,000 crore for three years. The official deadline for Fame II was March 2024.

Reportedly, the government was already working on Fame III, which may also include production-linked incentives (PLI) schemes with priority lending to India's EV industry.