Retrofitting Diesel Buses in India: Creating Jobs and Saving Costs
New Delhi, India – A recent report highlights the employment opportunities and cost savings from retrofitting inter-city diesel passenger buses to electric ones. Retrofitting involves replacing the original engine with a new alternative energy source within the existing vehicle body.
The report, prepared by the Foundation for Economic Growth and Welfare (EGROW Foundation) and Primus Partners, projects the creation of 6,000-7,000 direct jobs and 36,000-42,000 indirect jobs in the coming years. Retrofitting 20,000 buses annually could save about 500,000 tons of diesel and reduce crude oil imports by 12.7 million barrels each year.
Retrofitted buses significantly lower operating and maintenance costs compared to traditional and new electric buses. For instance, a 9-meter retrofitted bus costs Rs 19 per km, while a new electric bus costs Rs 28 per km. This makes retrofitted buses 32.1% more cost-effective.
The report also suggests policy recommendations, including incorporating retrofitting incentives into the FAME policy, modifying GST norms, and revisiting state retrofit EV policies. Dr. Charan Singh, CEO of EGROW Foundation, and Davinder Sandhu, Chairperson of Primus Partners, emphasized the economic and environmental benefits of retrofitting, calling it a critical step towards sustainable urban transport.
