PM E-BUS SERVICE-PSM SCHEME

• Central Sector Scheme by Ministry of Housing & Urban Affairs (MoHUA) providing a sovereign-backed Payment Security Mechanism to insulate e-bus OEMs/operators from default risk by Public Transport Authorities (PTAs) under the Gross Cost Contract (GCC) model.
• Operationalises the parent PM-eBus Sewa (Aug 2023) by removing the single biggest bottleneck — non-payment risk that made financiers shy of e-bus leasing.
• UPSC-relevant for GS-III (Infrastructure, Environment) and GS-II (Centre-State financing of urban transport).