Electrification of India's Public Sector Transport

Introduction
Over the last decade, there has been a drastic shift in the adoption of Electric Vehicles (EVs) across the globe. Climate change, increased availability of renewable resources, rapid urbanisation, and advancements in battery technology led to large-scale acceptance of EVs. According to International Energy Agency (IEA), nearly 18 million EVs were sold during 2010–2021, with cars accounting for 92% of sales, followed by buses (4%), vans (3%), and trucks (1%). Adoption of EVs is particularly gaining importance in public transportation as it provides an opportunity to reduce carbon emissions and air pollution as well as helps increase acceptance of public transportation among the masses. Buses constitute a major fleet in public transportation and are ideal for EV infrastructure due to their defined route structure. According to IEA, about 0.7 million electric buses have been on the road across the globe over the last decade; this could increase further to achieve the net zero emission targets worldwide. The Government of India (GoI) aims for net zero carbon emissions by 2070 and has consequently introduced several policy initiatives to support the penetration of EVs in India, especially in the public transportation sector.

Public Transport System in India
The Indian public transportation system consists of roadways, railways, waterways, and airways. Roadways constitute a major part of the system covering close to 6.4 million km, consisting of national highways, state highways, and other roads. The country has the second-largest road network in the world. In India, close to 36.5 million people, or 18% of the population, use public transport services daily.

Transition to EVs
The Government of India has set targets to reduce the economy's carbon intensity by 45% by 2030 and achieve net zero emissions by 2070. It is possible only through the mass adoption of EVs, especially in the public transportation system. Out of the 5,60,493 EVs sold in India (from January 2022 to August 2022), two-wheelers and three-wheelers accounted for 94% of the total, four-wheelers 5%, and e-buses 0.2%. Since e-buses account for a minor share of the EVs sold in the country, a monthly increase in the vehicle fleet is warranted to achieve the net zero emissions target by 2070. As of Q1 FY23, 467 e- buses have been sold, with a sequential increase of 39% and a YoY increase of 51%.

Source:EVreporter and Vahan Dashboard

Role of State Governments
State governments have an extensive role in EV adoption as many people depend on state-administered transportation system for their daily commute. Each state government has drafted its EV policy to reduce emissions and comply with the central government objectives to promote faster EV adoption. Major states that have adopted the EV policy and set targets to convert the existing bus fleets to EVs are:  

Source: Respective state government websites and EVreporter 

Based on the number of e-buses sold in 2021, Maharashtra leads with 552 units, followed by Gujarat (216 units), Uttar Pradesh (192 units), Delhi (31 units), Karnataka (27 units), Bihar (26 units), and others (127 units).

Source:EV reporter

Government Initiatives
Several ministries and departments, including NITI Ayog, have been involved in supporting the electric mobility vision at the central level. GoI has drafted some policy initiatives to promote public and private EV usage in the country, which include the following.

National Electric Mobility Mission Plan (NEMMP): It is a national mission document that provides a vision for the adoption of electric vehicles and their manufacturing in the country. Under NEMMP, the Department of Heavy Industry launched Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles in India (FAME India). FAME I scheme (2015–19) focused on market creation through demand incentives across vehicle segments: two-wheelers, three-wheelers, four-wheelers, light commercial vehicles, and buses. The scheme supported close to 2.78 lakh EVs and allotted 465 buses to various states with a total demand outlay of Rs. 343 crores (US$ 41.6 million). FAME II scheme (2019–2022), was formulated for three years with a total budget outlay of Rs.10,000 crore (US$ 1.2 billion). The plan focuses on the electrification of public and shared transportation and increase demand by way of subsidies for 7,000 e-buses, 10 lakh two-wheelers, 5 lakh three-wheelers, and 55,000 four-wheelers.

National Mission on Transformative Mobility and Battery Storage: The mission, chaired by CEO Niti Ayog, aims to establish phased manufacturing facilities for EVs and components. The primary objective is to localise EVs to reduce cost.

Ministry of Power's notification on public charging infrastructure: Charging infrastructure is a crucial element when it comes to EVs. Ministry of Power released guidelines on setting up charging infrastructure that are safe, reliable, and affordable. Phase I of the scheme was aimed at roads connecting cities with more than 4 million population. Phase 2 (2021–2024) targets state capitals, UTs, and all major roads and highways connecting these cities. Currently, in India, there are close to 1,640 charging stations, of which nine cities (Surat, Delhi, Hyderabad, Bengaluru, Kolkata, Chennai, Pune, Ahmedabad, and Mumbai) account for 940 stations. Besides that, oil marketing companies and the Department of Heavy Industries have come forward with plans to set up charging infrastructure.

Road Ahead
With regards to energy consumption, 18% of the total energy is consumed by the transport sector. It is quite alarming that the road transport sector contributes 87% to the emissions (around 123 million tonnes). India is progressing in terms of EV adoption in the two-wheeler and three-wheeler segments. However, the country is yet to witness strong transformation in the electrification of the public transportation sector. By 2030, Niti Ayog and RMI forecasted EV sale penetration of 80% for two and three-wheelers, 50% for four-wheelers, and 40% for buses. Reduction in the cost of batteries, availability of charging infrastructure, and strong policy initiatives from GoI and state governments would help in accomplishing the goal.  

The exchange rate used was INR/USD: 0.01214