MHI allocates 11,000 e-buses to five of nine cities under PM E-drive scheme
'From Bengaluru to Delhi, cities are actively embracing electric buses to make public transport cleaner, smarter, and more efficient," said heavy industries minister H.D. Kumaraswamy, who chaired a meeting with ministry officials on the rollout.
The government has allocated 4,500 electric buses to Bengaluru, 2,000 to Hyderabad, 2,800 to Delhi, 1,000 to Ahmedabad, and 600 to Surat under the PM E-drive scheme.
'We are not merely allocating electric buses—we are shaping the future of India's transport system with innovation and environmental consciousness. With close coordination between the Centre and states like Telangana, Karnataka, Delhi, and Gujarat, we are determined to deliver on the PM e-Drive promise," the union minister added.
Under the PM e-Drive scheme, the Centre plans to provide subsidies for 14,028 buses with an allocation of about ₹ 4,391 crore, forming nearly 40% of the scheme's outlay.
This allocation—to be spent till FY26—is aimed at bolstering intra-city green mobility in nine cities with populations above four million. These are: New Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad, Surat and Pune.
Mint reported on 5 May that due to overwhelming demand for electric buses from states, they may have to settle for fewer than what they had asked for.
The approximate cost of an electric bus is about ₹ 1 crore, of which the government subsidizes ₹ 20-35 lakh, as per the scheme notification.
Buses longer than 6m upto 8m will get a maximum subsidy of ₹ 20 lakh; ones over 8m upto 10m, the subsidy is capped at ₹ 25 lakh; while those above 10m upto 12m will get a maximum incentive of ₹ 35 lakh.
After the memorandum of understanding is signed between the state transport utility and the selected bidder, the ministry of heavy industries will provide 20% of the agreed subsidy amount as an advance.
This will be followed by the disbursal of another 30% of the subsidy once operations begin, while a quarter will be provided after six months of successful operations. The remaining quarter will be given after 18 successful months of commercial operations.
After granting electric buses to these states, a competitive bidding process will be conducted by state-run Convergence Energy Services Ltd for state transport utilities to purchase these buses, as per the scheme guidelines.
The government's approval for electric buses in five out of nine cities under PM e-Drive came after a moderate FY25. The number of electric buses sold in the country fell 5.7% on-year to 3,314 in FY25, compared with 3,516 in FY24, the Vahan portal data showed. Mint reported on 16 March 2025 that the adoption of electric buses in FY25 at 4.72% was the lowest since 9.34% in FY22.
'The PM e-Drive initiative is a defining move in India's journey toward sustainable public transport. As cities like Delhi, Bengaluru, and Hyderabad grow their electric bus networks, we're proud to provide dependable, advanced technology tailored to modern urban needs. This progress highlights a strong collective push for cleaner, smarter mobility," said Aanchal Jain, chief executive officer, PMI Electro Mobility, which had an orderbook of 2,845 electric buses in February 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
an hour ago
- Hindustan Times
Simpler GST structureas govt pushes reform
Prime Minister Narendra Modi on Friday announced a major overhaul of the goods and services tax regime, hinting at lower rates on most items by Diwali, with people aware of the plans adding that most of the goods currently taxed at 12% could drop to 5% and most of those in the 28% bracket could shift to 18% under a proposed structure that will also have a 40% rate for what are considered sin or luxury goods. Prime Minister Narendra Modi addresses the nation from the ramparts of Red Fort on 79th Independence Day, in New Delhi on Friday. (ANI) Speaking from the Red Fort ramparts on the 79th Independence Day, Modi said his government would implement 'next-generation GST reforms' that would substantially reduce the tax burden across the country, particularly benefiting farmers, the middle class and small businesses. Since GST is a consumption tax, the ultimate beneficiary will be the consumer. 'This Diwali, I am going to make it a double Diwali for you. This Diwali, you fellow countrymen are going to get a very big gift,' Modi said, adding that after eight years of GST operations, 'the need of the hour is that we should review it once.' People aware of the matter in the government later detailed the proposal: a simplified two-slab structure replacing the current four-tier system that has operated since GST's launch on July 1, 2017 is being considered. The reforms, according to these people, will make everyday essentials significantly more affordable — from groceries and medicines to televisions and washing machines. Agricultural equipment, bicycles, and even insurance and education services are set to become cheaper, delivering direct relief to households and farmers while boosting consumption across the economy. Under the proposed framework, most goods and services would be taxed under two categories — 5% and 18% rates — with a 40% 'demerit' levy on items that currently attract the compensation cess. This will effectively whittle down the existing structure that includes of 5%, 12%, 18% and 28% brackets, along with a compensation cess for luxury and sin goods. As per law, the compensation cess will cease to exist after March 31, 2026. The new 40% levy is being considered for the goods in the last category. The people cited above added that '99% of items' currently in the 12% slab will move to the lower 5% bracket, and 90% of goods in the 28% category will shift to 18%. The Centre has forwarded its proposals to the Group of Ministers examining rate rationalisation, which will place recommendations before the GST Council — the apex federal body on indirect taxation comprising finance ministers from all states and chaired by Union finance minister Nirmala Sitharaman. The council is empowered to accept the proposal, with or without modification, or reject it. 'We have discussed with states and we are bringing next-generation GST reforms that will reduce the tax burden across the country,' Modi said. 'Tax on items the common man uses will be reduced substantially. Our MSMEs will benefit hugely. Daily use items will become cheaper, which will also strengthen our economy.' One of the people cited above added that, 'there is a near consensus to rationalise the GST rates. Some opposition parties are even keen to reduce the number of slabs to just one, which is difficult in the Indian situation because tax rates for items used by the common people, and luxury items used by the rich cannot be the same.' This person added that the council is expected to meet by October with a final decision, as indicated by Modi, expected prior to Diwali in the latter half of the month. The restructuring would make essential items such as food products, daily-use goods, agricultural equipment, televisions, refrigerators, washing machines, medicines, education and insurance significantly cheaper. 'The common man, particularly the middle class would be the biggest beneficiary,' the person mentioned above said, citing examples: Items currently taxed at 12% — including condensed milk, dried fruits, frozen vegetables, sausages, pasta, jams, namkeens including bhujiya, tooth powder, feeding bottles, carpets, umbrellas, bicycles, utensils, furniture, pencils, handbags made of jute or cotton, and footwear under ₹1,000 — could see rates drop to 5%. Similarly, goods in the 28% bracket such as cement, air-conditioning machines, dishwashers, monitors, projectors, set-top boxes and television sets including LCD and LED models could become cheaper at 18%. However, around half-a-dozen 'demerit' items, such as cigarettes and online gaming, would face a new 40% tax rate, replacing the current compensation cess structure. Special rates would remain unchanged, with diamonds continuing to attract 0.25% and gold and silver maintaining 3% taxation, which are mainly for exports after value addition. Petroleum products would stay outside the GST framework. 'We started the review by setting up a high-power committee and also held discussions with the states,' Modi explained during his address. With most states governed by the BJP and its allies, the proposals are expected to gain approval with some ease. Beyond rate rationalisation, the GST Council would also consider proposals for further ease of compliance using technology and faster refunds to exporters, officials said. Tax experts hailed the proposed changes as transformative for India's economic landscape. 'Moving to a two-rate GST structure will put India at par with advanced economies which have a low rate for essentials and another rate for everything else,' said MS Mani, partner at Deloitte India. 'Classification issues and disputes will significantly reduce if we get a two-rate structure.' However, Mani cautioned that 'the absence of anti-profiteering provisions now would make it incumbent for businesses to self-regulate and pass on the reductions to the consumers.' Saurabh Agarwal, partner at EY India, described the reforms as 'essential structural changes' designed to build economic resilience. 'The Prime Minister's vision for GST 2.0 is a timely and strategic move to build a resilient Indian economy,' he said. 'By addressing the inverted duty structure, we are unlocking crucial working capital and making our exports more competitive on the global stage,' Agarwal added. 'Simultaneously, rationalising rates will boost domestic consumption, creating a powerful buffer against external shocks.' He said simplifying compliances for MSMEs would help bring down costs and make their products competitive in the market. 'These reforms will strengthen India's manufacturing capabilities and make our economy more self-reliant and agile in a volatile global landscape.' The government expects to offset revenue losses through an expanded tax base and improved compliance, with officials confident that the broader economic benefits would quickly compensate for any initial revenue shortfall. The announcement marks the most significant reform to India's indirect tax structure since GST's introduction eight years ago, which at the time merged a web of local and federal levies into a simpler system.
Time of India
2 hours ago
- Time of India
S&P upgrade likely to cut govt borrowing costs: Finmin official
New Delhi: S&P's upgrade of its long-term sovereign credit rating on India after 18 years citing economic resilience can potentially lower the government's borrowing costs, a senior finance ministry official said. Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency The upgrade in rating to 'BBB' from the lowest investment grade of 'BBB-' will add to the investor optimism about the country's strong macroeconomic fundamentals, despite persisting external headwinds, including an extra 50% US tariffs on Indian exports, he reckoned. The yield on 10-year benchmark government securities inched up 10 basis points over the past one month to close at 6.41% on Thursday, but it still remained 45 basis points lower than a year before. The yield has risen in recent weeks over concerns about lower-than-expected direct tax collections, over-supply of papers and fading hope of an interest rate cut in October, according to analysts. The central bank has trimmed the repo rate by 100 basis points since February to 5.5% now. The focus has now shifted to transmission. However, a robust growth outlook, as reaffirmed by S&P, surplus liquidity in the system and overall supportive monetary policy settings will have a positive impact on the G-sec yield, the official said. S&P expects a strong annual growth rate of 6.8% for India for the next three years, with a 6.5% expansion in FY26. Retail inflation hit an eight-year low of 1.55% in July. Lower inflation will ease the pressure on the RBI to maintain supportive monetary policies in the coming quarters, S&P has said. "(Moreover) The fact that S&P also thinks the US tariff impact will be manageable, given India's relatively less reliance on external trade for growth, should also soothe nerves of investors," said another official. Moreover, monsoon rains have been plentiful, and global crude oil prices have retreated to $67 per barrel after a brief surge in the aftermath of the Israel-Iran conflict, and could stay subdued for the rest of FY26 amid expected steady supply. All these would weigh down the bond yield, officials reckon. 'No supply glut by govt' The government won't flood the market with its securities and private players won't be crowded out, officials told ET recently. The Centre plans to stick to its FY26 gross market borrowing target of ₹14.82 lakh crore to avoid negative surprises, they had said. Moreover, it has sharply hiked the capex allocations for the ministries of railways and road transport & highways in recent years. So, it's not using entities linked to these ministries to garner extra-budgetary resources, reducing pressure on the market. States, too, have been promised ₹1.5 lakh crore in capex loans by the Centre from its budget in FY26. This reduces their market borrowing needs proportionately.
Economic Times
3 hours ago
- Economic Times
S&P upgrade likely to cut govt borrowing costs: Finmin official
S&P's upgrade of India's sovereign credit rating after 18 years, driven by economic resilience, may lower government borrowing costs and boost investor confidence. Despite external challenges like US tariffs, India's strong macroeconomic fundamentals and growth outlook are reaffirmed. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: S&P's upgrade of its long-term sovereign credit rating on India after 18 years citing economic resilience can potentially lower the government's borrowing costs, a senior finance ministry official upgrade in rating to 'BBB' from the lowest investment grade of 'BBB-' will add to the investor optimism about the country's strong macroeconomic fundamentals, despite persisting external headwinds, including an extra 50% US tariffs on Indian exports, he yield on 10-year benchmark government securities inched up 10 basis points over the past one month to close at 6.41% on Thursday, but it still remained 45 basis points lower than a year yield has risen in recent weeks over concerns about lower-than-expected direct tax collections, over-supply of papers and fading hope of an interest rate cut in October, according to central bank has trimmed the repo rate by 100 basis points since February to 5.5% now. The focus has now shifted to a robust growth outlook, as reaffirmed by S&P, surplus liquidity in the system and overall supportive monetary policy settings will have a positive impact on the G-sec yield, the official said.S&P expects a strong annual growth rate of 6.8% for India for the next three years, with a 6.5% expansion in inflation hit an eight-year low of 1.55% in July. Lower inflation will ease the pressure on the RBI to maintain supportive monetary policies in the coming quarters, S&P has said."(Moreover) The fact that S&P also thinks the US tariff impact will be manageable, given India's relatively less reliance on external trade for growth, should also soothe nerves of investors," said another monsoon rains have been plentiful, and global crude oil prices have retreated to $67 per barrel after a brief surge in the aftermath of the Israel-Iran conflict, and could stay subdued for the rest of FY26 amid expected steady supply. All these would weigh down the bond yield, officials government won't flood the market with its securities and private players won't be crowded out, officials told ET recently. The Centre plans to stick to its FY26 gross market borrowing target of ₹14.82 lakh crore to avoid negative surprises, they had it has sharply hiked the capex allocations for the ministries of railways and road transport & highways in recent years. So, it's not using entities linked to these ministries to garner extra-budgetary resources, reducing pressure on the too, have been promised ₹1.5 lakh crore in capex loans by the Centre from its budget in FY26. This reduces their market borrowing needs proportionately.
