New payment security mechanism to support large-scale e-bus rollout in the works

The Indian government will come out with a "payment security mechanism" to support large-scale rollout of electric buses as it eyes a major transition towards green public transport across the country, Tarun Kapoor, advisor to the Prime Minister at the PMO, said on Thursday. He also emphasised on the need to bring down the cost of electric vehicles to accelerate their adoption.

While the government will continue to provide subsidies like those being offered under the FAME-II scheme because the price difference is huge and it has to be bridged, "we have to look at ways and means to bring down the price also, because government subsidy cannot be forever", he said, while addressing an Assocham conference on electric mobility here.

Kapoor highlighted the need to be "a little more serious" in battery manufacturing "because we can't depend on imports".

He said while China has taken the lead on lithium-ion batteries, India can catch up very fast and the government is looking at the entire ecosystem.

He cited the example of the Mines and Minerals (Regulation and Amendment) Bill passed by Parliament in the ongoing session, which seeks to allow larger participation of the private sector in mineral exploration and production, including that of lithium.

Kapoor said a "payment security mechanism" is being established after feedback was received about the difficulties in obtaining lending by financial companies.

"Something major and very good is already planned and it will come out. So we should be able to roll out a large number of electric buses all over the country," he said.