India and the US will work together to speed up New Delhi's shift to electric public transportation systems in order to achieve its net zero objectives. This demonstrates the increasing commercial and political connections between the two nations as they aim to counterbalance China's impact on the world stage.
The proposal, which has been sent for inter-ministerial consultations, states that the US will provide $150 million (approximately ₹1,250 crore) to establish a fund that will act as a payment guarantee for companies supplying electric buses to struggling state transport undertakings (STUs).
The initiative is intended to accelerate the use of e-mobility in India, which is home to some of the most polluted cities in the world. After the Cabinet approves the proposal, the government will release multiple tenders for approximately 50,000 electric buses. The government plans to roll out these buses over the course of five years through the National Electric Bus Programme (NEPB) as a part of a larger effort to reduce expensive crude oil imports and decrease vehicle pollution.
"We are in the final stages of discussions to put in place a payment security mechanism to replace old, polluting diesel buses with electric ones. The proposal has been forwarded for inter-ministerial consultations, after which it will be sent for cabinet approval," a senior government official told ET on condition of anonymity. "Electrifying buses is a priority for the government as it can have the highest impact, both socially as well as environmentally."
