New Delhi: Bringing into reality, a joint vision initially announced during Prime Minister Narendra Modi's official visit to the White House, India and the US on Wednesday launched a collaborative initiative aimed at deploying 10,000 made-in-India electric buses in cities across the country.
The goal is to promote sustainable public transportation, reduce emissions, and create cleaner and healthier urban environments.
The initiative aligns with the priorities set at the recent G20 Leaders' Summit, where both the US and India committed to tackling the climate crisis through sustainable investments, including decarbonising the public transportation sector.
US Ambassador to India Eric Garcetti said: "Every day we see the impact of the climate crisis at a global level. We must respond now or jeopardise the future of our planet and our people. The partnership announced today 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.