Abstract:

NITI Aayog has issued a draft concession agreement for public private partnership (PPP) for operation and maintenance of electric buses in Indian cities. The draft has been issued with the view of providing cleaner, more efficient and affordable public transportation. The objective is to provide operation and maintenance (O&M) efficiency of the city bus fleet for the authority, while ensuring bankability of the project for the private sector. NITI Aayog’s model is based on international best practices. The concessionaire (license or permit holder) will be required to incur the necessary capex for procurement of the e-buses and O&M infrastructure, while the authority will incur operational expenditure on per kilometer basis.