PM e-BUS SEWA
1. Context
The Union Cabinet on Wednesday approved a slew of schemes ranging from the PM-eBus Sewa for augmenting city bus operations to seven multi-tracking projects of the Indian Railways worth Rs 32,500 crore.
2. PM e-Bus Sewa
- The Union Cabinet has approved the PM e-Bus Sewa initiative to enhance green mobility by deploying 10,000 electric buses in 169 cities through a public-private partnership model.
- The 'Green Urban Mobility Initiative' of the scheme will update infrastructure and Automated Fare Collection Systems in 181 cities.
- The scheme focuses on cities with a population of 3 lahks and above, with a total estimated cost of Rs 57,613 crore, including Rs 20,000 crore in central government support.
3. PM Vishwakarma Scheme
- PM Modi's Independence Day scheme offers subsidized loans up to Rs 2 lakh to traditional artisans like weavers, goldsmiths, blacksmiths, laundry workers, and barbers.
- They'll receive Rs 1 lakh in the first tranche and Rs 2 lakh in the second, at a low-interest rate of 5%.
- The launch is set for September 17 with a budget of Rs 13,000 crores on Vishwakarma Jayanti.
4. Seven Projects of Indian Railways
- The Union Cabinet approved 7 multi-tracking projects of the Ministry of Railways with an estimated cost of Rs 32,500 crores.
- The projects will be fully funded by the Central Government and will cover 39 districts in 9 states of the country (Andhra Pradesh, Bihar, Gujarat, Jharkhand, Maharashtra, Odisha, Telangana, Uttar Pradesh & West Bengal).
- The proposed projects aim to increase the existing network of Indian Railways by
2339 km. - They also aim to boost the existing line capacity, smoothen train operations, reduce congestion, and facilitate ease of traveling and transportation.
5. Extension of Digital India Programme
- Union Cabinet greenlights Digital India project extension with Rs 14,903 crore outlay.
- Plan targets upskilling 6.25 lakh IT pros, and training 2.65 lakh in info security.
- 'Bhashini' AI translation tool expands to 22 languages, 9 supercomputers added to National Super Computer Mission.
- 1,200 startups in Tier 2/3 cities supported, DigiLocker expanded to MSMEs for digital document verification.
6. What is the e-mobility policy in India?
India does not have a single comprehensive e-mobility policy, but rather various initiatives, incentives, and guidelines aimed at promoting electric mobility. These initiatives are driven by both central and state governments and are often focused on reducing pollution, and oil imports, and promoting sustainable transportation. The specific details and policies may have evolved since then, but here are some key elements that were part of India's e-mobility efforts:
- FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) Scheme: Launched by the Indian government, this scheme provides incentives and subsidies to manufacturers and buyers of electric vehicles (EVs) to promote their adoption. It covers various types of EVs, including two-wheelers, three-wheelers, and buses.
- Incentives for EV Buyers: Various states in India offer incentives such as subsidies, reduced road taxes, and registration fees for electric vehicle buyers to make EVs more affordable.
- Charging Infrastructure: The government is working to establish a network of electric vehicle charging stations across the country to address "range anxiety" and encourage more people to adopt EVs.
- Import Duty Reduction: There have been discussions about reducing import duties on key components used in electric vehicles to encourage domestic manufacturing and reduce costs.
- Research and Development Support: The government has been providing research and development incentives to encourage innovation and technology development in the field of electric mobility.
7. What is the Public Private Partnership (PPP) model?
The Public-Private Partnership (PPP) model is a collaborative arrangement between a public sector entity (typically a government agency or authority) and a private sector entity (a company or consortium of companies) for the purpose of jointly delivering public infrastructure or services. In a PPP, both sectors share responsibilities, risks, and rewards in a project or initiative.
Key characteristics of the PPP model include:
- Shared Responsibilities: Under a PPP, the public and private sectors collaborate to jointly plan, design, finance, implement, operate, and maintain a project or service. Each party brings its strengths to the partnership: the public sector provides regulatory oversight, public interest representation, and access to public funds, while the private sector contributes expertise, innovation, and funding.
- Risk Sharing: Risks associated with the project, such as financial, operational, and construction risks, are shared between the public and private sectors. This encourages efficient risk management and can attract private investment.
- Long-Term Contracts: PPPs often involve long-term contractual agreements between the public and private sectors, spanning multiple years or even decades. These contracts outline the roles, responsibilities, performance standards, and financial arrangements of both parties.
- Innovation and Efficiency: The private sector's expertise and profit motive can lead to innovations in project design, construction, and operation, potentially improving efficiency and quality.
- Funding Arrangements: In many PPPs, the private sector contributes a significant portion of the funding required for the project. This reduces the burden on the public sector's budget and allows governments to allocate resources to other essential services.
8. What are the types of PPP?
Public-Private Partnerships (PPPs) can take various forms and structures, depending on the nature of the project, the level of risk-sharing, the financial arrangements, and the specific goals of the partnership. Some common types of PPP models include:
- Concession Contracts: In this model, a private company or consortium is granted the right to operate, maintain, and potentially finance a public infrastructure project (such as a toll road, airport, or port) for a specific period. The private entity is often responsible for revenue collection and recoups its investment through user fees or charges.
- Build-Operate-Transfer (BOT): In a BOT arrangement, the private sector designs, finances, builds, and operates a project (e.g., a power plant or a water treatment facility) for a defined period. At the end of the concession period, ownership and operation of the project are transferred back to the public sector.
- Build-Own-Operate (BOO): Similar to BOT, in a BOO model, the private sector designs, finances, builds, owns, and operates the infrastructure project. Unlike BOT, there is no explicit requirement to transfer ownership back to the public sector.
- Build-Lease-Transfer (BLT): Under this model, the private sector finances and constructs a project and then leases it to the public sector for a specified period. At the end of the lease term, ownership may be transferred to the public sector.
- Build-Transfer (BT): In a BT arrangement, the private sector designs and constructs the project, transferring ownership to the public sector upon completion. However, operation and maintenance may remain with the private sector.
- Design-Build-Operate (DBO): In a DBO model, the private sector is responsible for designing, constructing, and operating the project. Financing may also be included in some cases.
- Service Contracts: Under a service contract, the private sector provides specific services related to a public facility or service, such as maintenance, operation, or management. Ownership typically remains with the public sector.
- Management Contracts: In a management contract, the private sector is responsible for the day-to-day management and operation of a public asset, such as a sports stadium or convention center. Ownership and financial risk remain with the public sector.
- Joint Ventures: In a joint venture, both public and private sector entities collaborate to establish a new entity for the purpose of developing, operating, and managing a project. Risks and rewards are shared between the partners.
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For Prelims: PM e-Bus Sewa, PM Vishwakarma Scheme, Digital India Programme, FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles), Public-Private Partnership (PPP), Build-Operate-Transfer (BOT), Build-Own-Operate (BOO), and Build-Lease-Transfer (BLT).
For Mains: 1. Discuss the various types of Public-Private Partnership (PPP) models and their significance in promoting infrastructure development and service delivery. (250 words).
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Previous year Question1. With reference to 'fuel cells' in which hydrogen-rich fuel and oxygen are used to generate electricity, consider the following statements: (UPSC 2015)
1. If pure hydrogen is used as a fuel, the fuel cell emits heat and water as by-products.
2. Fuel cells can be used for powering buildings and not for small devices like laptop computers.
3. Fuel cells produce electricity in the form of Alternating Current (AC)
Which of the statements given above is/are correct?
A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A
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Source: The Hindu
