'Workers are the miners of nation-building': Sonowal (See 'Corp Brief') India strengthens Textile and Sericulture Cooperation with Georgia (See 'Corp Brief') J&K to host launch of First Limestone Block Auction Roadshow (See 'Corp Brief') Indian Railways crosses 1 Billion Tonne Freight Loading in FY 25-26 (See 'Corp Brief') FEMA - Indian currency falls within scope of 'property' u/s 63 of FERA, empowering authorities to confiscate it when used in contravention of law: HC (See 'Legal Desk') IICA, DGR conclude Certification Program for senior Defence Officers (See 'Corp Brief') Op Drishti: Over 400 surgeries performed at Northern Command, J&K (See 'Corp Brief') ILO welcomes India's Labour Codes (See 'Corp Brief') Limitation Act - provisions of Limitation Act cannot be applied beneficially in favor of a petitioner who demonstrates mala fide intentions, including tampering with official documents: HC (See 'Legal Desk') PMLA - Pre-arrest protection would undermine integrity of ongoing investigation, and anticipatory bail in such cases should be granted sparingly: HC (See 'Legal Desk') RTI/SEBI - Refusal to disclose certain information justified, where details sought for pertains to commercial interests of third parties & received by SEBI in fiduciary capacity during its regulatory functions & disclosure of which could harm competitive position of relevant entities - YES: SEBI (See 'Legal Desk') Misc - When election process was initiated by notifying election and subsequently commenced, writ petition is not maintainable against it without exhausting alternate remedy: HC (See 'Legal Desk') PMLA - Question of substitution of attached property by way of any cash deposit or fixed deposit does not arise, if said property directly/indirectly acquired are attached, but not attached as value thereof: SAFEMA (See 'Legal Desk') Government intervention and Corporate governance (See CORP EINSICHT)

Print

Cabinet approves PM-eBus Sewa-Payment Security Mechanism scheme

Published: Sep 12, 2024

By TIOLCorplaws News Service

NEW DELHI, SEP 12, 2024: Union Cabinet, has approved the "PM-eBus Sewa-Payment Security Mechanism (PSM) scheme" for procurement and operation of e-buses by Public Transport Authorities (PTAs) with an outlay of Rs. 3,435.33 crore.

This scheme will support deployment of more than 38,000 electric buses (e-Buses) from FY 2024-25 to FY 2028-29. The scheme will support the operation of e-buses for a period of up to 12 years from the date of deployment.

At present, the majority of buses operated by Public Transport Authorities (PTAs) run on diesel/CNG, causing adverse environmental impact. On the other hand, e-buses are environment friendly and have lower operational cost. However, it was anticipated that Public Transport Authorities (PTAs) would find it challenging to procure and operate e-buses because of their high upfront cost and lower realization of revenue from operations.

To address the high capital cost of e-buses, Public Transport Authorities (PTAs) induct these buses through Public Private Partnership on Gross Cost Contract (GCC) model. The PTAs are not required to pay the upfront cost of the bus under the GCC model, instead OEMs/operators procure and operate e-buses for PTAs with monthly payments. However, OEMs/operators are hesitant to engage in this model due to concerns about potential payment defaults. 

The scheme addresses this concern by ensuring timely payments to OEMs/operators through a dedicated fund. In case of default of payments by PTAs, CESL, the implementing agency, shall make necessary payments from the scheme funds which will be later recouped by the PTAs/State/UTs.

This initiative seeks to facilitate adoption of e-buses by encouraging private sector participation. The scheme will also lead to significant reductions in greenhouse gas emissions and also reduce the consumption of fossil fuel. The scheme will provide benefits to all Public Transport Authorities (PTAs) present in State/UTs who opt for the scheme. 

 

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.