MHI allocates 11,000 e-buses to five of nine cities under PM E-drive scheme
New Delhi: The Centre will give subsidies to Delhi, Gujarat, Karnataka and Telangana to press 10,900 electric buses into service. These buses will hit the streets of Ahmedabad, Bengaluru, Delhi, Hyderabad and Surat, the heavy industries ministry said on Thursday.
'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.
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