Cost-Effective Analysis for Electric Vehicle (EV) Bus Procurement

Abstract

To minimize greenhouse gas emissions and fossil fuel consumption, the Government of India has launched schemes to promote the electric mobility through providing financial assistance for procurement of electric vehicles. Various “State Transport Undertakings (STUs)” have initiated the procurement process for EV Buses and to avail the incentives through Gross Cost Contract (GCC) Model or Outright Purchase Model. The choice of the appropriate model is dependent on many factors such as operational and financial capacity of the STU, competency of the private collaborator, public transport profile of the city, expected revenue, and estimated per kilometer cost of the transportation. This paper has attempted to propose a decision support framework for STUs which can be used to discern the sensitivity of overall cost with various components by assuming different scenarios to exhibit their influence on aggregate cost of operations and procurement of EV buses.