India Floats Biggest Tender Yet for 10,900 E-Buses Under PM e-Drive Scheme

kye Highlights:

• The government announces a tender for 10,900 electric buses under the PM e-drive scheme.
• Buses to be deployed in five major cities: Delhi, Bengaluru, Hyderabad, Ahmedabad, and Surat.
• Bengaluru to get the highest allocation with 4,500 buses due to severe traffic issues.
• CESL is conducting the tender under the Gross Cost Contract model with a 12-year operational plan.
• E-bus deployment supports India’s 2070 net-zero emission target with a focus on EV infrastructure readiness.

In a landmark move to boost electric mobility, the Indian government has floated its biggest tender yet, for 10,900 electric buses, under the PM e-Drive scheme. The electric buses will be deployed across five major cities: Delhi, Bengaluru, Hyderabad, Ahmedabad, and Surat. This initiative aims to improve public transport, reduce overcrowding, and ease traffic congestion, especially in fast-growing urban areas.

Major Cities to Benefit

Out of the total 10,900 electric buses, Bengaluru will receive the largest share with 4,500 buses. This decision was influenced by the city's well-known struggle with daily traffic congestion and long commute times.

The rest of the buses will be distributed as follows:

• Delhi – 2,800 e-buses
• Hyderabad – 2,000 e-buses
• Ahmedabad – 1,000 e-buses
• Surat – 600 e-buses

The tender includes both AC and non-AC variants to cater to varying climatic and commuter needs in each city.

Tender Process and Specifications

The bidding and procurement are being managed by Convergence Energy Services Ltd. (CESL), a government-owned agency under the Ministry of Power and New and Renewable Energy. The tender is being carried out under the Gross Cost Contract (GCC) model, which is commonly used for large-scale public bus operations.

The buses will come in two length categories:

• 9-metre buses, with an assured annual service of 64,800 km
• 12-metre buses, with an annual service target of 72,000 km

Both service commitments will be maintained over a 12-year operational period.

Supporting India’s Net-Zero Goals

This large-scale push for electric buses aligns with India’s larger climate goals, particularly the net-zero emissions target for 2070. By introducing thousands of e-buses into daily public transportation, the government hopes to cut down significantly on urban carbon emissions.

This initiative follows earlier schemes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), which laid the groundwork for EV adoption in India. Now, the PM e-Drive scheme takes that progress further by focusing on large-scale deployment in urban areas.

Evaluation System for States

To make sure the e-bus deployment is well-supported, the government has introduced a performance assessment matrix for states. This matrix helps assess how ready each state is in terms of EV ecosystem development. It focuses on three key areas:

• Existing EV-friendly policies
• Current level of EV penetration
• Available infrastructure for charging stations

States that perform better in these categories are likely to attract more investments and faster rollouts of e-mobility infrastructure.

Also Read: Electric Buses Sales Report June 2025: SWITCH Mobility Emerges as Top Choice for E-Buses

CVMV360 Says

This tender is a major step forward in transforming India’s urban transport system. By focusing on high-traffic cities, the government is addressing some of the biggest pain points for commuters: congestion, overcrowding, and pollution. The move also gives a boost to the electric vehicle industry and paves the way for cleaner, quieter, and more efficient public transport in the future. With proper implementation, this initiative could set the stage for a more sustainable and commuter-friendly future across Indian cities.