Centre asks states to scrap old diesel buses, replace them with EVs

According to a MoRTH estimate, 25 state transport undertakings own 32,062 buses that are over 10 years old

The Ministry of Road Transport and Highways (MoRTH) has asked state transport undertakings (STUs), responsible for procuring and operating buses, to replace over 32,000 old diesel buses with electric vehicles, a media report said on Tuesday.

According to a MoRTH estimate, 25 STUs own 32,062 buses that are over 10 years old. The draft notification by MoRTH stated that permits for buses at the end of their life cycle of 15 years will not be renewed, meaning they will have to be scrapped, the Livemint report said.

The ageing buses currently in use by STUs which has a fully CNG-run fleet, are BS-II or BS-III diesel buses which are not only highly polluting but also costly to maintain and run. 

But STUs have been severely hurt by low utilisation in the aftermath of the Covid-19 pandemic when both intra- and inter-city public transportation took a big hit as commuters switched to personal mobility.

In May, five cities — Delhi, Bengaluru, Kolkata, Hyderabad and Surat — procured 5,450 electric buses after Centre's policy thinktank, NITI Aayog, brought these cities/states and all stakeholders on a common procurement portal.

The lowest price discovered for a 12-meter bus was Rs 43.49/km, and a 9-metre bus is Rs 39.21/km. 

"These prices will set a benchmark for public transport, which will now encourage other cities to adopt electric vehicles. This is bound to redefine a new way of mobility for Indian cities, making deployment of e-buses at an affordable rate," NITI Aayog CEO Kant said.

NITI Aayog has planned to consolidate with more states to procure electric two-wheelers and three-wheelers by pushing the use of this procurement platform, he added.

The wider adoption of electric vehicles will help India in meeting its climate change goals announced in COP-26, Kant added.

“Switching to electric buses is a good scheme, but STUs have been in a bad shape after Covid-19. We lose Rs 4-6 crore each day because of increasing operational costs as diesel prices have constantly been shooting up. Electric buses will help reduce costs," the Livemint quoted VC Sajjanar, vice-chairman and MD, Telangana State Road Transportation Corp, as saying.