UP Approves 1,725 Electric Buses Across 18 Cities: Check City-Wise Allocation and Subsidy

Key Highlights

• UP Cabinet approves 1,725 electric buses across 18 cities.

• Lucknow and Kanpur receive the highest allocation of 300 buses each.

• Project to operate under a 12-year Gross Cost Contract model.

• Government subsidy of ₹35 lakh for 9-metre and ₹40 lakh for 12-metre buses.

• Free depot land and preference for local manufacturing.

The Uttar Pradesh government has approved the deployment of 1,725 air-conditioned electric buses across 18 cities to improve public transport and promote cleaner mobility. The decision was approved by the state Cabinet on Friday, with the project set to operate under the Gross Cost Contract (GCC) model for 12 years.

The initiative will cover major cities, including Lucknow, Kanpur, Varanasi, Gorakhpur, Agra, Ghaziabad and Noida. The government will provide financial support for bus procurement and facilitate depot development, while private operators will manage daily services.

UP Electric Bus Project: City-Wise Allocation

The approved fleet will consist of 9-metre and 12-metre air-conditioned electric buses. Lucknow and Kanpur will receive the highest allocation, with 300 buses each, followed by Varanasi with 250 buses and Gorakhpur with 150 buses.

Agra, Ghaziabad, Meerut and Noida, including Jewar, will receive 100 buses each. Ayodhya, Prayagraj and Mathura-Vrindavan have been allocated 50 buses each.

The remaining seven cities-Aligarh, Firozabad, Shahjahanpur, Bareilly, Moradabad, Saharanpur and Jhansi, will receive 25 buses each.

This allocation will expand electric public transport services across urban centres in Uttar Pradesh.

Government to Provide Subsidy of Up to ₹40 Lakh Per Bus

To support the project, the state government will provide a subsidy of ₹40 lakh for each 12-metre electric bus and ₹35 lakh for each 9-metre bus. Municipal corporations and the Noida Authority will also provide land free of cost for constructing bus depots.

The project will give preference to local manufacturing, supporting domestic production as the state expands its electric bus fleet.

How Will the Gross Cost Contract Model Work?

Under the Gross Cost Contract model, private operators selected through competitive bidding will be responsible for procuring the electric buses, setting up depot charging infrastructure, hiring drivers and managing daily operations.

The Uttar Pradesh government will retain control over passenger fares and user charges. This arrangement will allow private operators to manage the operational side of the project while the government oversees passenger pricing.

The 12-year contract period will provide the framework for operating the electric bus services across the selected cities.

What Does This Mean for Public Transport in UP?

The deployment of 1,725 electric buses is expected to strengthen public transport infrastructure and increase the availability of electric mobility options across Uttar Pradesh. The use of air-conditioned buses will provide an additional public transport option for urban commuters, while electric vehicles can help reduce tailpipe emissions compared with conventional diesel buses.

With financial subsidies, free land for depots and a preference for local manufacturing, the project combines public transport expansion with support for electric mobility and domestic production.

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CMV360 Says

Uttar Pradesh's approval of 1,725 electric buses across 18 cities marks an important step in expanding electric public transport. The project will include 9-metre and 12-metre air-conditioned buses operated under a 12-year GCC model. Subsidies of ₹35 lakh to ₹40 lakh per bus and free depot land will support implementation. With private operators managing daily services and the government controlling fares, the initiative aims to improve urban connectivity and promote cleaner mobility.