Centre Receives Demand for 15,000 Electric Buses from 3 States

Key Highlights:

• Gujarat, Telangana, Karnataka seek 15,000 e-buses.

• Buses to be subsidised under PSM scheme.

• Target to deploy 50,000 e-buses by 2030.

• ₹4,391 crore set for 14,000 e-buses by FY26.

• Delhi’s count awaited; 3 states yet to respond.

Under the PM e-Bus Sewa - Payment Security Mechanism (PSM) scheme, the central government has received requests for 15,000 electric buses (e-buses) from three states — Gujarat, Telangana, and Karnataka. These buses will be provided at a subsidised price to support clean public transportation.

Part of India’s Larger Electric Bus Goal

The government of India is working towards deploying 50,000 e-buses by 2030 under the National Electric Bus Program (NEBP). The program focuses on improving public transport in nine major cities and seven states, which include:

• Gujarat

• Telangana

• Karnataka

• Delhi

• Maharashtra

• Tamil Nadu

• West Bengal

The NEBP was launched in 2022 as part of India’s green mobility goals.

Demand Still Awaited from Four States

While Gujarat, Telangana, and Karnataka have submitted their demand under the PSM scheme, four other states are yet to send their proposals. An official shared:

"We got a demand for 15,000 e-buses from Gujarat, Telangana, and Karnataka under the PSM scheme against our target of 14,000. Delhi is in the process of specifying the numbers, and it will come shortly. However, no demand has come from Maharashtra, Tamil Nadu, and West Bengal."

PM E-Drive Scheme Funding for Public Transport

The Ministry of Heavy Industries is planning to spend 40% of the ₹10,900 crore allocated under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme towards electrifying public transportation.

Out of this amount, ₹4,391 crore has been set aside to roll out a little over 14,000 e-buses by the end of FY2025-26.

Tender Plans Under Consideration

The government is currently deciding on the next steps for procurement. One official mentioned:

"Now, we are mulling over whether to open a tender for these states and give them the e-buses in the first phase, or wait for another month for the remaining states and do it at one go. We will take a call in a week."

CMV360 says

The Centre’s push for electric buses marks a major step toward cleaner public transport. With strong interest from three states and funding support under key schemes, India is on track to boost e-bus deployment. Timely participation from other states will further strengthen the country’s green mobility mission by 2030.