# ICRA: E-bus subsidy cuts raise operator funding needs 2026-08-13T11:42:22+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Government subsidies for electric buses have dropped from ₹35-55 lakh per bus under FAME-II to ₹20-30 lakh under PM E-DRIVE, ICRA said. This raises the upfront funding operators must arrange, even as India's e-bus fleet electrification could require ₹1.5 lakh crore over a decade. ICRA expects e-bus penetration to rise to 30% by FY30 from 7% now. The total cost of ownership of e-buses is lower than diesel or CNG, but higher acquisition costs remain a hurdle. Lenders are becoming more comfortable, and a Payment Security Mechanism aims to reduce risk, though it has yet to be tested operationally. ## Coverage - thehindubusinessline.com Tags: electric buses, FAME-II, ICRA, PM E-DRIVE, public transport, subsidies Canonical: https://indianopinion.org/icra-e-bus-subsidy-cuts-raise-operator-funding-needs/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/icra-e-bus-subsidy-cuts-raise-operator-funding-needs/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.