In recent years, there has been a rising focus on shifting to cleaner forms of mobility, as rapid population growth and urbanisation have worsened traffic congestion and air quality outcomes. In line with this, according to the Transportation and Development Policy, India must shift approximately 50 per cent of forecasted travel to public transportation, walking and biking by 2050 to reduce emissions and meet its climate goals.
In this context, two key emerging focus areas in the public transportation landscape are the bus rapid transit (BRT) system and electronic buses (e-buses).
Government initiatives
The government has launched several key measures to accelerate the transition towards clean mobility, with a focus on sustainable public transportation. Under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India Scheme (FAME I), 425 electric and hybrid buses were deployed across various cities through government incentives worth Rs 2.8 billion. While under Phase II of FAME, the Ministry of Heavy Industries has sanctioned 6,862 e-buses with incentives worth Rs 30.09 billion, of which, as of August 2024, around 4,901 e-buses have already been deployed. Of the total buses deployed, Delhi had the greatest number of e-buses, followed closely by Karnataka and Maharashtra. As part of the proposed FAME III policy, the government is considering significant changes, including a 50 per cent domestic value addition requirement and removal of the phased manufacturing programme. It aims to replace 800,000 diesel buses with e-buses by 2031.
An important ongoing initiative is the PM-eBus Sewa programme. It aims to support around 10,000 new e-buses across 169 Indian cities under the public-private partnership model. It is estimated to cost around Rs 576 billion, with Rs 200 billion provided by the central government. It prioritises small to medium-sized cities having a population of about four million people, particularly those that currently lack organised bus services.
Moreover, through the e-Sawaari India Electric Bus Coalition, the central-, state- and city-level government agencies, transit service providers, original equipment manufacturers, financing institutions and ancillary service providers will be able to share their knowledge and learnings on e-bus adoption in India.
State progress
Many cities are electrifying their fleets even outside the scope of FAME and other schemes, through state-level grants and subsidies under state-level electric vehicle (EV) policies and the Smart Cities Mission. Pune, Mumbai, Delhi, Ahmedabad and the state of Kerala are conducting their own tenders and procurements according to their business models.
In February 2024, Maharashtra accounted for about 25 per cent of e-buses operated in India. Further, it is in the process of procuring 5,150 e-buses, the largest in the country. Mumbai alone has added around 900 buses in the past three years. By 2025, it plans to add 2,400 e-buses. Delhi has purchased 1,100 e-buses and aims to electrify 80 per cent of its fleet next year.
The Karnataka State Road Transport Corporation plans to introduce eco-friendly e-buses in Dakshina Kannada district and on inter-district destination routes. In February 2024, the state government sanctioned 45 e-buses to the Mangaluru division and 40 buses to the Puttur division, and the process of handing over the vehicles is under way. It will also implement dynamic QR codes for UPI payments in its buses. The initiative will be launched in 10,245 Android electronic ticketing machines across 8,000 buses, with plans for 15,000 devices over the next five years.
With 40 e-buses already in operation, the Andaman & Nicobar Islands plan to fully transition its 250-bus fleet to battery EVs by 2030. The union territory’s procurement, infrastructure and energy approach could be a good model for Tier II and Tier III Indian cities. It aims to accelerate the adoption of EVs such that they contribute to 30 per cent of the new registrations by December 2026.
In March 2024, GreenCell Mobility deployed a fleet of 150 e-buses in Surat, Gujarat, which is expected to offset 99,747 tonnes of carbon dioxide equivalent.
Under a joint initiative of Kleen Smart Bus Limited and the SCMS Institute for Road Safety and Transportation in Kerala, drivers will be scientifically trained on safe and defensive driving, traffic rules, technical aspects of buses, etc. This is expected to help Kerala sustain the public transport sector in the state.
BRTS
The BRTS consists of a single lane capable of transporting around 20,000 passengers in one direction every hour. Recently, this system has been proposed to be built on expressways to generate more revenue. These include the Bengaluru-Chennai expressway, the Satellite Town Ring Road being constructed on the outskirts of Bengaluru, the Delhi-Mumbai expressway, the Delhi-Dehradun expressway and other road projects. It will enable the operation of 18-20 metre long e-buses at lower ticket prices.
Cities like Jaipur, Ahmedabad, Indore, Vijayawada, Delhi, Pune, Bhopal and Rajkot have successfully implemented BRTS. More BRTS routes are proposed to be constructed across Nagpur, Hyderabad, Chennai, Coimbatore and Madurai, while in Tiruchirappalli, BRT routes are at the planning stage. In a first, Atal Indore City Transport Service Limited plans to convert the BRTS into a “green mobility-friendly corridor” by replacing all diesel-run buses with EVs soon.
In an effort to facilitate the deployment of 10,000 Made-in-India e-buses, the Indian government and the US have collaborated to develop a payment security mechanism. This initiative aims to encourage private sector participation in the procurement and operation of e-buses.
Challenges
Despite the initiatives and strategies to achieve India’s climate goals, there is a plethora of challenges associated with the deployment of clean buses. High initial costs and unfavourable financing conditions for EVs compared to conventional vehicles hamper demand and adoption rates.
Moreover, the absence of a well-established secondary market for EVs adds uncertainty to the resale value of EVs and batteries. In addition, the lack of a well-networked charging infrastructure restricts the use of EVs to predictable short journeys. The scarcity of skilled mechanics in this sector and the heavy dependence on imported battery components complicate matters further.
The way forward
The India Smart Grid Forum has proposed the electrification of school buses to prevent prolonged exposure to harmful emissions for children. Schools can install rooftop solar panels, save on electricity bills and avail power banking by supplying solar power to the grid and drawing it back to charge the buses when required. This initiative is expected to encourage the wider adoption of clean buses and reduce pollution.
Going forward, collaboration among industry leaders and academic institutions can drive innovation in battery technologies and energy solutions.
Despite efforts being made to evolve their use through various initiatives, the development of hydrogen-based buses is at a nascent stage. Back in September 2023, Indian Oil Corporation Limited launched a trial run of two hydrogen buses in Delhi. In May 2024, it signed an MoU with the Indian Army for the deployment of hydrogen fuel cell technology for heavy-duty clean mobility. With these initiatives already in place, a wider adoption of these buses can be expected in the future.
India supports the global EV30@30 campaign, which aims for at least 30 per cent of new vehicle sales to be electric by 2030. Interestingly, according to a report by NITI Aayog, the sales penetration of e-buses will be around 40 per cent by 2030. Therefore, the future demand is forecasted to be at least 300,000 by 2030.
Decarbonising the public transport sector is a crucial step. The adoption of electric, compressed natural gas (CNG) and hydrogen buses can lead to a more sustainable footprint for the transportation sector. Government programmes such as the National e-Bus Programme and the upcoming FAME III scheme are expected to positively impact the augmentation of e-buses and accelerate the country’s efforts to move to net-zero carbon emissions.