Assessing Financing Challenges for Implementing the Large-scale Electric Bus Program in India
Decarbonizing the transport sector is crucial for reducing GHG emissions. The Government of India has prioritized EV adoption in buses through schemes like FAME and NEBP, deploying e-buses via public-private partnerships. However, financing challenges persist due to unfavorable lending terms and delayed payments from PTAs. This paper examines the constraints and measures needed to attract large-scale private investment in e-bus projects.
India plans to deploy 50,000-60,000 e-buses in the coming years. As e-bus deployment is a capital-intensive exercise, effective and innovative financing pathways become critical for scaling up India’s e-bus ambitions successfully.
This working paper aims to understand the early-stage challenges in India’s e-bus financing from financier and operator perspectives, drawing from various stakeholders and expert consultations. It also provides insights into the critical interventions needed to encourage Public-Private Partnerships (PPP) aimed at accelerating the deployment of large-scale e-bus projects to build a sustainable, affordable, and resilient public transport ecosystem.
