India has given the green light to investment of INR576.13bn (US$7bn) to improve green public transport infrastructure.
Bloomberg said the investment would be used for a fleet of 10,000 electric buses in various cities.
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Information and broadcasting minister Anurag Thakur said this initiative would alleviate the public transport scarcity and usher in a new era of electric mobility.
The federal government would contribute INR200bn, alongside private companies.
According to Bloomberg, the plan would involve competitive participation for financial assistance by cities with populations from 300,000 to 4m.
Thakur said the government would offer subsidies for the buses.
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By GlobalDataThis decision followed a recent meeting between India’s heavy industries minister Mahendra Nath Pandey and US climate envoy John Kerry, focused on potential financial support from the US for the project. A report commissioned by the federal oil ministry earlier this year underscored the need to switch from diesel buses in favour of greener alternatives. The study noted India would need to add an additional 3m buses to meet the demand for public transport.
