Budget 2024: Promotes E-bus Adoption through Innovative Payment Security Measures

In the interim budget 2024, Finance Minister Nirmala Sitharaman revealed plans to encourage the widespread use of e-buses in public transport networks. A payment security mechanism will be implemented to support this initiative and strengthen the overall e-vehicle ecosystem.

International Collaboration for E-Bus Deployment

The United States and India have joined forces to establish a payment security mechanism facilitating the deployment of 10,000 Made-in-India electric buses in 2023. This announcement was made during Prime Minister Narendra Modi's three-day state visit to the US, reinforcing India's commitment to reduce greenhouse gas emissions.

Also Read: Budget 2024: Win-Win for Construction and Commercial Vehicle Industries with Strategic Investments

India's E-Bus Penetration Targets

The budget emphasizes India's commitment to decarbonising the transportation sector, aiming for a 40% e-bus penetration by 2030 and net neutrality by 2070. As of March 2023, only 1.16% of the 349,726 registered buses are electric, and the new measures aim to accelerate adoption.

Industry Perspectives on Budget Measures

Gautam Shahi, Director at CRISIL Ratings, views the payment security mechanism and increased support for charging infrastructure as positive steps. CRISIL Ratings anticipates the penetration of electric buses to double by around 8% by fiscal 2025.

Chetan Maini, Co-founder and Chairman of SUN Mobility, applauds the government's progressive move towards electrifying the heavy vehicle segment, showcasing efforts to encourage wider electric vehicle adoption.

Prashanth Doreswamy, President and CEO of Continental India, appreciates the government's commitment to the EV ecosystem, emphasizing the importance of expanding and strengthening manufacturing and charging infrastructure.

Dr. Aanchal Jain, CEO of PMI Electro Mobility, highlights the announcement of a Payment Security Mechanism as a proactive measure, fostering a conducive business environment for the electric vehicle sector.