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Delhi may have to wait longer than expected to get the next tranche of electric buses, with the Finance Department flagging issues with funding for subsidies. The city was expected to get 579 e-buses by the end of the year, in addition to the 800 that have already been added to the fleet.
Officials said that while the Cabinet approved the proposal last year, the Transport Department has not made any provision in the budget to fund the subsidy, after which the Finance Department has advised it to prepare a scheme.
A total of 1,500 e-buses were to be procured under the Centre’s grand challenge, which is part of its scheme to promote e-buses in the country. Of the total, 921 buses were to be procured under the Centre’s FAME scheme, as per which a subsidy of Rs 45.26 lakh per bus is to be given. The subsidy for the remaining 579 e-buses was supposed to be given by the Delhi government.
Following the approval, the Transport Department and the Delhi Transport Corporation (DTC) requested an amount of Rs 285 crore as subsidy.
Sources, however, said that the Finance Department in a recent meeting refused to release the amount and advised the Transport department to prepare a detailed scheme. “The transport department has to make the scheme, which will be sent to the Planning Department. Once approved, it will go to the Finance department,” said sources.
Transport Minister Kailash Gahlot said, “Although this issue has not been brought to my notice, once a proposal has received approval of the Cabinet, the Finance Department should make adequate funds available to the department. It should also take all necessary steps so that funds are released on time.”
Officials said that like the FAME model, the Delhi government will give a subsidy of Rs 285 crore for the 579 buses.
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Currently, there are 800 e-buses in Delhi. 400 e-buses under the FAME-II model were inaugurated last month.
At the inauguration, Delhi Chief Minister Arvind Kejriwal said the government gets a subsidy of approximately Rs 45 lakh per bus (from the Centre), while the total expenditure on procuring 921 buses would be Rs 4,091 crore.
The Delhi government has a target to add 10,480 buses by December 2025, of which 80% — 8,280 — are supposed to be electric.
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