Govt to procure 5,585 electric buses for public transport under FAME scheme

The electric buses to be procured under FAME scheme will be deployed in various cities, and are expected save over 1.2 billion litres of fuel.

8th Aug 2019
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The government has sanctioned 5,595 electric buses in 64 cities for intracity and intercity operations under the second phase of Faster Adoption and Manufacture of (Hybrid and) Electric Vehicles (FAME) India scheme in order to push for clean mobility in public transportation, an official release said on Thursday.


The Ministry of Heavy Industries and Public Enterprises had invited expression of interest (EoI) from cities with million-plus population, smart cities, State or Union Territory (UT) capitals, and special category States for submission of proposal for deployment of electric buses on operational cost basis.


Electric bus

Image source:  The Indian Express




During the process, the Department of Heavy Industry received 86 proposals from 26 States or UTs for the deployment of 14,988 e-buses.


After evaluation of these proposals as per EoI, on the advice of Project Implementation and Sanctioning Committee (PISC), the government sanctioned 5,095 electric buses to 64 cities or State transport corporations for intra-city operation, 400 electric buses for intercity operation, and 100 electric buses for last-mile connectivity to Delhi Metro Rail Corporation (DMRC), an official release said.

Each selected city or STUs (State transport undertaking) is now required to initiate the procurement process in a time bound manner for deployment of sanctioned electric buses on operational cost basis, it added.

As per EoI, buses that satisfy required localisation level and technical eligibility notified under FAME India scheme phase II will be eligible for funding under FAME India scheme phase II, release added.

The buses are expected to run about four billion kilometres during their contract period and are expected to save cumulatively about 1.2 billion litres of fuel over the contract period, which will result into avoidance of 2.6 million tonne of CO2 emission.


The government has unveiled numerous initiatives to encourage the use of electric vehicles, which include subsidy and tax incentives. Recently, the government announced a Goods and Services Tax (GST) reduction for electric vehicles, charger, and charging stations.


The 36th GST Council recommended a reduction of GST rate on all electric vehicles from 12 percent to five percent. Also, GST rate on the charger/charging stations for electric vehicles was reduced from 18 per cent to five percent.



(Edited by Evelyn Ratnakumar)




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