Stakeholder Consultation on Deployment of e-buses in Areas other than STUs
On September 3, 2024, Convergence Energy Services Ltd (CESL), in collaboration with USAID's SAREP (South Asia Regional Energy Partnership) Program, organized a stakeholder consultation focused on the deployment of electric buses (e-buses) in areas other than State Transport Undertakings (STUs). Held in Delhi, this event brought together key stakeholders from across the transportation sector, including private bus operators, E-bus Original Equipment Manufacturers (OEMs), bus operator associations and financing entities. The event was part of CESL’s broader initiative to promote electric mobility in India.
As India aims for its 2070 net-zero targets, the electrification of buses presents a significant opportunity. As of now, E-bus adoption in India has been driven by government support through initiatives like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and dedicated programs such as the National Electric Bus Programme (NEBP) and the PM e-Bus Sewa Scheme, aimed at transitioning fleets operated by State Transport Undertakings (STUs). However, there is no such support for private operators to adopt electric buses. Given that 90% of all bus services are provided by the private sector, there is a need to actively involve private operators in the bus electrification efforts. This closed-door consultation sought to provide a platform for private bus stakeholders, including schools, hospitals, and rural and intercity bus operators, to share their challenges regarding adoption of e-buses and explore viable solutions to accelerate the adoption of e-buses.
Apurva Chaturvedi from USAID/India stressed the importance of expanding e-bus deployment beyond the STUs to meet India’s climate goals. She emphasized the need for accurate demand estimation and highlighted USAID's support in this transition.
Vishal Kapoor, MD & CEO of CESL, discussed CESL's efforts to drive e-bus adoption across India. He outlined strategic initiatives and partnerships aimed at encouraging the private sector to embrace electric mobility.
Ravi Gadepalli, Transit Intelligence, provided a data-driven perspective on the current landscape and future potential of intercity e-buses in India. He explained the existing barriers to e-bus adoption across various stakeholder groups, basis findings of bus operator surveys.
Rajneesh Rana, Head of Convergence at CESL, emphasized the importance of ongoing discussions on e-bus electrification, the development of supportive policies and regulations, and the need for collaboration between government and private stakeholders.
During the stakeholder consultation, private bus operators expressed their eagerness to transition to electric buses. However, several challenges are hindering their ability to make this switch.
One major challenge is that private buses are currently not permitted to park in government bus depots. As a result, drivers are forced to park their buses far from actual pickup points, causing operational inefficiencies.
Another issue raised is the lack of charging infrastructure at bus depots, which makes it difficult for operators to charge their electric buses. Additionally, the availability of funding is a significant hurdle, as private operators often struggle to secure the necessary capital for investing in e-buses.
To address these challenges, several solutions were proposed. Firstly, it was suggested that private e-buses should be granted access to government bus depots for parking and charging purposes. Furthermore, installing charging stations or at least plug points within bus depots would provide much-needed infrastructure for e-bus operators. On the financial front, corporate guarantees could be introduced to ensure easier access to funding for private bus operators looking to invest in electric buses.
It was also recommended that the deployment of e-buses should begin in tier-2 and tier-3 cities, where there is ample space for setting up EV charging stations along highways and main roads. Once the infrastructure and operations are established in these smaller cities, the rollout could then expand to tier-1 cities.
As a pilot project, the electrification of one specific route—such as the Delhi-Mumbai route—was suggested.
By starting with this route, stakeholders could assess the specific needs related to e-bus specifications, charging infrastructure, and operational requirements. Based on the insights gained from this pilot, further electrification of other routes could proceed more efficiently and rapidly.
In a nutshell, the stakeholder consultation highlighted the significant potential for private bus operators to embrace electric buses, while also shedding light on the practical challenges that must be addressed to enable a smooth transition. The discussions underscored the importance of collaboration between the government and private sector to create a supportive infrastructure, including access to bus depots, charging stations, and streamlined funding mechanisms. It laid the foundation for CESL and its partners to develop targeted programs that address the specific needs of private bus operators. With the right solutions in place, India can accelerate its shift towards sustainable public transportation, benefiting both the environment and urban mobility in the long run.
