Cabinet Approves PM-eBus Sewa-Payment Security Mechanism (PSM) Scheme [Current Affairs]
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme with a budget of INR 3,435.33 crore. This initiative is designed to promote the deployment and operation of electric buses (e-buses) by Public Transport Authorities (PTAs) from FY 2024-25 to FY 2028-29.
Scheme Details
- Objective: Support the deployment of over 38,000 e-buses, ensuring their operation for up to 12 years from the date of deployment.
- Funding Mechanism: The scheme will address the high upfront costs of e-buses through a Public Private Partnership on a Gross Cost Contract (GCC) model. Under this model, PTAs do not need to pay the initial cost of the buses. Instead, Original Equipment Manufacturers (OEMs) and operators will procure and manage the e-buses with monthly payments.
Payment Security
- Dedicated Fund: To mitigate the risk of payment defaults by PTAs, the scheme includes a dedicated fund managed by Convergence Energy Services Limited (CESL). In case of default, CESL will cover the payments, which will later be recouped from the PTAs or respective states and Union Territories.
Environmental and Operational Benefits
- Impact: The shift from diesel/CNG buses to e-buses will reduce greenhouse gas emissions and fossil fuel consumption, aligning with the PM’s vision of Atmanirbhar Bharat.
Related Initiative
- FAME-III Scheme: The Cabinet also approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with a total outlay of INR 10,900 crore. This scheme aims to support the adoption of 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 e-buses, along with funding for public charging stations, electric trucks, and e-ambulances.
Source: currentaffairs by adda247
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