REC Plans To Finance 50,000 E-Buses In 2-3 Years

- Advertisement -

REC has announced plans to increase its investment in the entire renewable energy portfolio to approximately Rs 3 lakh crore by 2030, a tenfold increase from its current allocation, extending beyond just electric buses.

In the fiscal year 2023-24, the Rural Electrification Corporation (REC) Ltd significantly expanded its financial support for electric buses, nearly tripling its funding to approximately 10,000 buses. The allocation surged from Rs 2,439 crore in FY23 to Rs 7,124 crore, indicating robust interest in electric buses among State Transport Undertakings throughout India.

Vivek Kumar Devangan, the Chairman and Managing Director of the government-backed REC, conveyed that due to strong market demand, he anticipates REC will provide financing for over 50,000 electric buses in the next two to three years. This statement was made during an event in Mumbai last week. Additionally, REC has announced plans to increase its investment in the broader renewable energy sector by tenfold, aiming for about Rs 3 lakh crore by 2030.

- Advertisement -

For the fiscal year that concluded in 2024, the REC CMD reported a 533% increase in funding for all renewable energy initiatives, which includes solar and wind energy, electric mobility, and green hydrogen projects, from Rs 21,554 crore in FY23 to Rs 1,36,516 crore.

Further information from the company’s senior executives indicates that REC plans to finance the Original Equipment Manufacturer’s (OEM) gross cost contracts (GCC model) emanating from various state transport undertakings, the Government of India’s PM E Bus Sewa program, and private transport operators looking to replace their diesel bus fleets with electric ones.

TSC Bosh, Executive Director of REC, emphasized the company’s commitment to significantly support green hydrogen and electric mobility projects, particularly electric buses. He stated that REC is poised to be a major player in funding bus programs through RFPs issued by various state transport companies and providing comprehensive ecosystem support for India’s electric bus mobility journey, including private entities.

Bosh also confirmed that they have ambitious plans to improve electric mobility in the state transport bus sector and among private tour and travel operators who are keen to transition to electric mobility. This is why they have projected plans to finance 50,000 buses.

Regarding REC’s other green initiatives, in FY24, the company allocated Rs 7,997 crore to green hydrogen projects, up from no disbursements in FY23. Funding for solar energy projects also saw a significant increase, more than doubling to Rs 20,956 crore in FY24 from Rs 9,031 crore in FY23.

The cost of green hydrogen, currently around US$ 5-6, is expected to decrease to US$ 1 by 2026-27, mirroring the price trajectory of solar energy, which has fallen from Rs 16 per kWh a few years ago to current rates of Rs 2.5 to 3 per kWh as more competitors enter the market.

REC also aims to support the production of green ammonia, which is seeing rising demand in Western European nations such as Germany, the United Kingdom, and France.

- Advertisement -

Most Popular Articles

Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

“AIC-T-Hub Aims To Grow Startups So More Indian Unicorns Can Contribute To The GDP”

0
T-Hub has collaborated with Atal Incubation Centre (AIC), initiated by the Atal Innovation Mission to incubate semiconductor startups, fostering innovation for India’s advancement in...

Pros And Cons: Boult’s Varun Gupta On Contract Electronics Manufacturing

0
While contract electronics manufacturing is not a new concept in India, it has lately picked up a pace never seen before. But what has...

Buzz

Lava Mobiles Reorganizes Its Board

0
Indian smartphone manufacturer Lava International restructured its bard of directors following the co-founder's resignation.  Lava International, one of the leading domestic smartphone makers, rearranged its...

HCLTech And Arm Partner To Work On Custom Silicon Chips For AI-driven Biz

0
HCLTech announced its collaboration with British semiconductor and software design company Arm to enhance custom silicon chips that support AI-driven business operations.  The Noida-based IT...

ICEA Pushes For Scheme To Boost India’s Electronics Manufacturing

0
The electronics industry in India has put forward a major production-linked incentive (PLI) scheme to the government. The India Cellular & Electronics Association (ICEA) has...

Important Sectors

HCLTech And Arm Partner To Work On Custom Silicon Chips For AI-driven Biz

0
HCLTech announced its collaboration with British semiconductor and software design company Arm to enhance custom silicon chips that support AI-driven business operations.  The Noida-based IT...

ICEA Pushes For Scheme To Boost India’s Electronics Manufacturing

0
The electronics industry in India has put forward a major production-linked incentive (PLI) scheme to the government. The India Cellular & Electronics Association (ICEA) has...

BluSmart Launches New EV Charging Service App, Expands Infrastructure For Public 

0
BluSmart introduces its ‘BluSmart Charge’ app and extends its EV charging infrastructure to cater to customers across Delhi-NCR and Bengaluru.  The eMobility ride-hailing service, and EV...

Recyclekaro Among Four Li-ion Battery Recyclers Registered On India’s EPR Portal

0
The e-waste and lithium-ion battery recycling company is now one of four registered lithium-ion battery recyclers, alongside Lohum Cleantech, Attero, and LICO Materials. Recyclekaro has...

Neuron Energy And Hexall Motors Team Up To Power L5 EVs

0
It is anticipated that the partnership will produce a yearly revenue of Rs 20 crore for Neuron Energy. Neuron Energy, a key player in manufacturing...

Manufacturing

Hyundai Mobis To Invest More In EV Parts, Chips

0
Hyundai Mobis, the top auto parts manufacturer in South Korea, announced its intention to increase investment in electric vehicle (EV) components and automotive chips...

Vitesco Tech Delivers Electric Drive For Honda CR-V PHEV

0
This is the first integration of a Vitesco Technologies drive system into a hydrogen fuel cell electric vehicle (FCEV). Vitesco Technologies will provide its EMR3...

Google To Begin Pixel Production At Foxconn, Dixon In September

0
According to sources, Google's collaboration with Foxconn complements its plan to manufacture Pixel smartphones at the Dixon facility. Google is set to partner with Foxconn...

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...