Govt to invite bids for reallocation of subsidy for 2,000 e-buses in February

NEW DELHI: The Centre will invite proposals from state transport departments for reallocation of central subsidy for 2,000 electric buses under its Fame II scheme to promote electric mobility, but will not allow participation of cities that defaulted in the first round, people aware of the development said.

The government is expected to issue an expression of interest next month under the ongoing second phase of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (Fame India), but it is likely to be open to only state utilities that have awarded tenders or are close to award tenders as per the scheme, they said. This means about 18 cities that have not been able to initiate tendering to award contracts to bus companies to avail subsidy under Fame II will not be allowed to bid, one of the people said.

The subsidies allocated to these cities to procure around 1,500 electric buses under the scheme initiated in August last year will now be reallocated. “This will ensure only serious players are allocated subsidies for buying electric buses,” the person told ET. “The electric bus industry has been demanding to bar cities that squat on allocated subsidies.”

About 30 cities have awarded contracts for 2,000 electric buses under the scheme as the deadline expired on January 15, while another 20 cities are at various stages of finalisation of contracts for about 1,900 e-buses. The cities that have not initiated the tendering process under Fame II include Hyderabad, Agartala, Shimla, Srinagar, Jammu and Raipur, the person said. As many as six cities in this list are from Andhra Pradesh. Transport authorities of Bengaluru, Uttarakhand, Kochi, Kozhikode and about eight cities in Tamil Nadu are in the final stages of awarding contracts and will be able to avail allocated subsidy and also participate in the forthcoming bidding, the person said.

With proposed fund allocation of Rs 10,000 crore, Fame II aims to give a push to the government’s e-vehicle drive.