Electrification of public transport will play a key role in mitigating pollution and contribute to India’s 2070 net-zero commitment. India’s National Electric Bus Program aims to deploy 50,000 e-Buses by 2027 and the ‘PM eBus Sewa’ will augment city bus operations in India by 10,000 e-buses on PPP model.
On December 9, 2023, USAID India, in partnership with the Ministry of Heavy Industries, Government of India, organized a side event on ‘Payment Security Mechanism for Procurement and Operation of e-Buses in India’ at India Pavilion at COP28 UAE. The side event was graced by Shri Bhupender Yadav, Union Minister Environment, Forest and Climate Change & Minister of Labour and Employment, and Senator John Kerry, Special Presidential Envoy for Climate Change. In their address, the two dignitaries emphasized on the India-US partnership aiming to tackle climate change through electrification of public transport, decarbonization of the public transportation sector, and through sustainable investments.
The side event also brought together high-level delegates from the US and Indian governments to discuss the collaboration in promoting and expanding electric public transportation. The panellists included Dr. Hanif Qureshi, IPS, Joint Secretary, Ministry of Heavy Industries, Mr. Richard Duke, US Deputy Special Envoy for Climate, Mr. Sudhendu J. Sinha, Adviser, Niti Aayog, GoI, and Mr. Vinay Chawla, Office of Special Presidential Envoy for Climate.
The payment security mechanism (PSM) will facilitate the deployment of 10,000 made-in-India electric buses in Indian cities, bringing into reality a joint vision first announced during Hon’ble Prime Minister of India, Shri. Narendra Modi’s official state visit to the White House. This commitment to decarbonize the transport sector was reiterated during President Joe Biden’s September visit to India during G20. The payment security mechanism will accelerate new and more sustainable investments by lowering financial risks and is expected to unlock $10b in investment. In his address, John Kerry mentioned that this model could also scale up other solutions, including supply chain, cooling, green hydrogen, large batteries, and building a green corridor.
USAID’s SAREP program is instrumental in the progress of PM eBus Sewa, participating in the RfS/tender design committee aimed at expediting the initiative. SAREP is supporting Convergence Energy Services Ltd (CESL) in aligning bidding documents and concession agreements with the best procurement practices, maximizing project bankability, and boosting investor confidence.