India to partner with US to accelerate e-mobility adoption

The United States will provide US$ 150 million to establish a fund as a payment guarantee for companies supplying electric buses to struggling state transport undertakings (STUs)

November 15, 2023

The objective is to accelerate the adoption of e-mobility in India, home to some of the world's most polluted cities

Upon approval by the Cabinet, the government plans to issue a series of tenders for a total of around 50,000 electric buses

The government is in the final stages of discussions to put in place a payment security mechanism to replace old, polluting diesel buses with electric ones

The deployment of these buses over five years is part of the National Electric Bus Programme (NEPB)

India and the United States are poised to collaborate in expediting New Delhi’s shift to electric public transport systems to achieve its net-zero goals. 

According to the proposed plan, currently under inter-ministerial consultations, the United States will provide US$ 150 million to establish a fund as a payment guarantee for companies supplying electric buses to struggling state transport undertakings (STUs). Discussions are ongoing to finalise the specifics of the financial mechanism.

The objective is to accelerate the adoption of e-mobility in India, home to some of the world’s most polluted cities. Upon approval by the Cabinet, the government plans to issue a series of tenders for a total of around 50,000 electric buses. The deployment of these buses over five years is part of the National Electric Bus Programme (NEPB), aligning with a broader strategy to reduce costly crude imports and combat vehicular pollution.

This proposal coincides with the visit of Commerce and Industry Minister Piyush Goyal to the United States, where he is scheduled to meet Tesla CEO Elon Musk to discuss details of the American electric carmaker’s plans to establish its first factory in India. 

Source: Economic Times

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