EV Stocks Surge on Cabinet Approval of PM e-Bus Seva Scheme

The PM e-Bus Seva Scheme has received approval from the Union Cabinet, as announced by Anurag Thakur, the Minister of Information and Broadcasting, during a press briefing on August 16. A significant budget of Rs 57,613 crore has been allocated for the implementation of this scheme.

Out of this allocated amount, the central government will contribute Rs 20,000 crore, while the remaining portion will be funded by the respective state governments.

Under the initiative’s framework, approximately 10,000 new electric buses are set to be deployed nationwide,” stated Thakur during his address to the press in New Delhi. These buses are scheduled to be introduced across a total of 100 cities.

The process of selecting cities for the bus rollout will involve a rigorous evaluation method, including the prerequisite that the population of these cities should exceed 3 lakhs, as highlighted by the minister.

The implementation of the scheme will be carried out using a public-private partnership (PPP) framework, elaborated Thakur. He also mentioned that the government will provide backing for the operation of electric buses for a span of 10 years.

Following the announcement of this news, the stocks of prominent electric bus manufacturers like Tata Motors, Ashok Leyland, Olectra Greentech, and JBM Auto started gaining some momentum.

 Not only will these companies be in focus, but also the auto ancillary and battery manufacturers will benefit from this news. We need to wait patiently to see who will win how many base orders. Until then, investors must keep a close watch on these stocks and keep them on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.