The PM-eBus Sewa will act as a catalyst for promotion of electric vehicles across urban centres to drive the penetration of electric mobility, Society of Manufacturers of Electric Vehicles (SMEV) said on Thursday.
"Buses being a pivotal source of urban pollution, the decision will help substantially reduce pollution levels and consequential carbon emissions," SMEV Director General Sohinder Gill said in a statement.
"Moreover, this strategic manoeuvre is set to act as a catalyst for the promotion of electric vehicles across diverse urban centres, enabling a more extensive embrace of electric mobility," he said.
The initiative holds the potential to generate direct employment opportunities and help upskilling existing resources, he said, adding that the scheme will also introduce economies of scale for the procurement of electric buses.
It will also play an instrumental role in propelling India towards self-reliance, environmental stewardship, and its envisioned status as a hub for EVs (Electric Vehicles), he said.
"Two-wheeler mobility is used by masses and its electrification can become a significant contributor to the EV mission of India," he said.
The Union Cabinet on Wednesday approved the 'PM-eBus Sewa' scheme under which 10,000 electric buses will be provided to 169 cities under the public-private partnership model.
The scheme would have an estimated cost of Rs 57,613 crore, of which Rs 20,000 crore will be provided by the central government and the remaining will be borne by states.
The PM-eBus Sewa will support bus operations for 10 years.