E-Bus Operations

Under
FAME-II
Project Brief
Sr. No. State State Total
• FAME II is a GOI scheme launched to 1 Andhra Pradesh 350
boost the Electric Vehicle segment. 2 Assam 100
3 Bihar 25
4 Chattisgarh 50
• GOI has allocated Rs. 10,000 crores to be 5 Dadra & Nagar Haveli 25
spent over 3 years in the form of demand 6 Delhi 400
incentives and for creation of necessary 7 Goa 50
infrastructure. 8 Gujarat 600
9 Haryana 50
10 HP 100
• Under the policy, focus is on getting the 11 Jammu & Kashmir 150
public transportation fleet converted onto 12 Karnataka 400
EVs before focusing on private vehicles. 13 Kerala 250
14 Maharashtra 775
Priority is in the order of electric buses, 3
15 Madhya Pradesh 340
wheelers, fleet cars, 2 wheelers and then 16 Odisha 50
private cars. 17 Rajasthan 150
18 Telengana 325
19 Tamil Nadu 525
• Under the scheme GOI released their first 20 Tripura 50
Expression of Interest for Deployment of 21 Uttrakhand 80
Electric Buses in June 2019. No. of Buses 22 Uttar Pradesh 600
sanctioned to each state is mentioned on 23 West Bengal 150

the right. 24 Total 5595

Electric Vehicle(EV) Space in India
India has 3 key Strategic Imperatives in This opportunity has called for the
EV Segment: competition of various Commercial
Vehicle OEMs.
• EVs could reduce our CO2
emissions by 37%. Tata
Motors
• A new source of power demand in
the form of Electric Vehicles will be Ashok
beneficial for the power sector BYD
Leyland
Major
Players
• This could result in a reduction of
156 MT (~US $ 60 Bn.) in diesel &
petrol consumption for that year.
Volvo PMI
Eicher Foton
FAME- II Scheme – Modus 0perandi
• As per Niti Aayog guidelines, STUs will operate these E-Buses on Wet
Lease on Gross Cost Contract Model.
• STUs have floated tender to select the bidders to operate these E-
Buses.
• Tenure for most of these Wet Lease Contracts is 10Yrs or more.
• Operator is assured payment on a fixed monthly mileage/bus through
Escrow Account mechanism.
• STU will always maintain 2 months advance payment in the Escrow
Account
• Operator will be able to get 40% subsidy on the cost of the bus capped
at
• Rs 35 Lakhs on Mini Buses
• Rs 45 Lakhs on Midi Buses
• Rs 55 Lakhs on Standard Buses
 Business Model
Sells Operates for

Bus
OEMs STUs
Cash Operator Cash

Funding Cash

Financial
Institution

• The OEM will not only • The Bus Operator • The State Transport
supply the E-Buses but will be responsible Unit (STU) will
also guarantee the for providing the operate this buses
product quality and Buses daily along based on their
maintain the Buses over with Driver. requirements and
the period of the Maintenance will be make payments to
contract. provided by OEM to the operator on
guarantee up-time monthly basis
through Escrow
Account.
Project Salient Points
• Incentivized Project
• Guaranteed Returns
• Long-Term Investment
• Clean Technology
• Government promoted
Thank You!