Karnataka gets 750 electric buses under PM-eBus Sewa scheme

The Hindu

23-07-2025

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Karnataka has been allotted 750 electric buses under the Centre's PM-eBus Sewa scheme, but the government of Karnataka has been urging for direct subsidy instead of the Public-Private Partnership (PPP) procurement model.
In response to a question raised by Rajya Sabha MP D. Veerendra Heggade, Union Minister of State for Housing and Urban Affairs Tokhan Sahu stated in Parliament that the Central Government had approved 750 e-buses for Karnataka under the scheme. 'As per the demand received from the State of Karnataka, a total of 750 electric buses have been sanctioned for all 10 eligible cities of the State under the PM e-Bus Sewa Scheme. Bengaluru and Udupi are not eligible as per the scheme's guidelines,' he said.
Launched on August 16, 2023, the PM-eBus Sewa scheme aims to strengthen public transport systems by deploying 10,000 electric buses across India through a PPP model.
'Deployment of electric buses under the scheme is subject to completion of work related to associated infrastructure (behind-the-meter power and civil depot infrastructure). A total of 7,293 buses have been sanctioned so far out of which 6,518 buses have been tendered,' Mr. Sahu said.
In Karnataka, Belagavi, Hubballi-Dharwad, Kalaburagi, Mangaluru, and Mysuru have each been allocated 100 buses while the remaining five eligible cities have been sanctioned 50 buses each.
City-wise allotment of buses under PM-eBus Sewa Scheme
City Buses Belagavi 100 Hubballi-Dharwad 100 Kalaburagi 100 Mangaluru 100 Mysuru 100 Shivamogga 50 Tumakuru 50 Ballari 50 Vijayapura 50 Davanagere 50 Total 750 Source Ministry of housing and urban affairs
However, Karnataka Transport Minister Ramalinga Reddy has criticised the current PPP approach. He emphasised that it was far more straightforward to procure and operate buses during the UPA era.
'Earlier, the Centre contributed 50% of the cost while the State and transport corporations shared the remaining 50% equally,' Mr. Reddy recalled. 'But now, under the NDA government, the subsidy is not given directly to States. Instead, private companies that win tenders receive the funding, own the buses, and are responsible for drivers and maintenance. The State-run corporations are only responsible for deploying conductors and paying the operator on a per-kilometre basis,' he added.
Mr. Reddy has urged the Central Government to revert to the earlier model by directly providing financial assistance to State transport corporations for a more transparent and efficient rollout.
Karnataka plans to introduce a total of 14,750 electric buses during the financial year 2025-26. A senior official from the Transport Department said that these buses would be procured through a combination of schemes, including PM-eBus Sewa, PM e-DRIVE, and other externally aided initiatives.
In addition to the e-buses, the State intends to add 1,000 diesel buses under the Gross Cost Contract (GCC) model, which involves hiring private operators to run State-owned buses.