Karnataka is pushing for 5,000 electric buses to enhance Bengaluru’s public transport system under the newly launched PM E-DRIVE scheme, aiming to tackle the city’s traffic congestion. The scheme, which was launched on September 29, 2024, as part of the Ministry of Heavy Industries’ efforts, builds on the previous FAME schemes. It is part of a larger initiative where the Centre will invest Rs 10,900 crore, including Rs 4,391 crore for 14,028 electric buses in nine major cities, with Bengaluru being one of the primary beneficiaries.
LK Atheeq, Additional Chief Secretary (Finance), emphasized the urgent need for expanding Bengaluru’s bus fleet, noting that the city requires 10,000-12,000 buses for optimal public transport. Currently, BMTC operates over 6,000 buses, but the fleet faces a yearly reduction of 400-500 old buses. Atheeq expressed hopes that the city would receive a significant share of the 5,000 e-buses it has requested.
To ensure timely payment for the buses, the state has devised a payment security mechanism, where funds will be deposited in an escrow account by BMTC, with the state government stepping in if payments are delayed.
The PM E-DRIVE scheme will provide subsidies for electric buses, ranging from Rs 20 lakh to 35 lakh per bus, with no bus costing more than Rs 2 crore. The scheme will also include leasing arrangements on a per-kilometre basis. Bengaluru’s BMTC currently operates 6,500 buses, including 1,231 electric vehicles, but with more buses planned, the city is looking forward to a substantial boost to its electric fleet.
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