Govt to unveil Rs 4,126 crore 'payment security fund' for e-buses

Move to ensure companies get secure, timely payments

In a significant step towards promoting eco-friendly and sustainable public transportation, the Centre is poised to unveil a Rs 4,126 crore ‘payment security fund’ to streamline the procurement of 38,000 electric buses (e-buses) across the country.

The planned move is to ensure that manufacturers receive secure and timely payments for the e-buses they supply to State Transport Undertakings (STUs) and other government agencies. This follows the underwhelming response from participants in recent e-bus tenders. The hesitation among bidders largely stems from concerns about the low bankability of e-bus leasing contracts and the existing financial challenges faced by STUs.

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