USAID Joins Hands With MHI To Focus On E-Mobility & E-Bus deployment

India and the US have launched a collaborative mechanism which will facilitate the deployment of 10,000 made-in-India e-buses in cities across the country bringing the joint vision into reality. The goal is to promote sustainable public transportation, reduce emissions, and create cleaner and healthier urban environments.

According to the official statement, this initiative aligns with the priorities set at the recently held G20 Leaders’ Summit in New Delhi where both the US and India committed to combat climate crisis through sustainable investments, including decarbonising the public transportation sector.

“Together, through the 75+ years of the US-India partnership, we've enhanced electricity access, supported energy institutions, & reduced millions of tons of greenhouse gas emissions. The deployment of 10,000 electric buses reinforces our commitment to #cleanenergy. We are paving the way for cleaner cities, fresher air, & healthier lives. Come, let’s take a ride together,” US Ambassador to India Eric Garcetti wrote on X.

He also said that the partnership will mobilise financing for a fleet of 10,000 electric buses throughout India, expanding options for electric public transportation in India, creating cleaner cities and healthier communities.

The initiative will involve collaboration between various stakeholders, including the US government (including USAID and the US Special Presidential Envoy for Climate), India’s Ministry of Heavy Industries, Convergence Energy Services Limited, and private philanthropic organisations like the Global Energy Alliance for People and Planet and the Sequoia Foundation.

One crucial aspect of this project is the introduction of a payment security mechanism (PSM) designed to lower financial risks associated with electric bus investments. By reducing risk for lenders, the PSM aims to improve loan terms and lower financing costs, making it easier to implement these sustainable transportation projects.

Overall, this partnership represents a model for international cooperation in the field of electric mobility and demonstrates how public and private entities can collaborate to address pressing environmental challenges.

Meanwhile, Delhi Transport Minister Kailash Gahlot said that he was glad that Delhi was leading the way in the fight for greener future. “Electric buses can change the world!” - Perfectly put by @USAmbIndia, @ericgarcetti after taking a ride in our zero noise, zero emission, 100 % electric bus. Glad that Delhi, under CM @ArvindKejriwal is leading the way in the fight for a more livable, greener, shared future!" Gahlot wrote on X.

Delhi Chief Minister Arvind Kejriwal also thanked Eric Garcetti and hoped that he enjoyed the electric-bus ride in New Delhi. “Hope you enjoyed the ride HE. @ericgarcetti @USAmbIndia Your recognition of the revolutionary power of electric buses is inspiring,” CM posted on X.

“Thank you for your DTC bus experience and your support of our unwavering commitment to green and sustainable transportation. Delhi’s electric buses are more than just vehicles; they’re a step towards a cleaner, quieter, and greener future,” he said in a series of post on the microblogging site.

According to a joint statement issued earlier this month, India and the United States will provide joint support for a payment security mechanism for expanding electric mobility in India, giving a boost to the PM e-Bus Sewa scheme that aims to procure 10,000 electric buses for cities that lack adequate public transport.