The central government will provide a subsidy to Delhi, Gujarat, Karnataka, and Telangana to bring 10,900 electric buses into operation. According to the Ministry of Heavy Industries, these buses will ply on the roads of Ahmedabad, Bengaluru, Delhi, Hyderabad, and Surat. Chairing a ministry meeting on the progress of the scheme, Heavy Industries Minister H.D. Kumaraswamy said, “From Bengaluru to Delhi, cities are rapidly adopting electric buses towards clean, smart and efficient public transport.”
Under the PM e-Drive scheme, 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 scheme, the Centre will provide a subsidy of around Rs 4,391 crore for a total of 14,028 buses, which is about 40% of the cost of the entire scheme. The amount will be spent by 2025-26 and aimed at promoting green transportation in 9 cities. These cities include New Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad, Surat, and Pune.
A report by Mint quoted Union Minister HD Kumaraswamy saying, “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.”
A Mint report on May 5 had mentioned that states may get fewer buses than expected due to the huge demand for electric buses. An electric bus costs around ₹1 crore, with the government providing a subsidy of Rs 20 to Rs 35 lakh. As per the scheme guidelines, 6-8 metre long buses will get a maximum assistance of Rs 20 lakh, 8-10 metre long buses will get Rs 25 lakh, and 10-12 metre long buses will get a maximum assistance of Rs 35 lakh.
After the MoU is signed between the state transport corporation and the selected supplier, the Ministry of Heavy Industries will give 20% of the subsidy upfront. A 30% subsidy will be given on commencement of operations, then 25% after six months of successful service, and finally the remaining 25% on completion of 18 months.
Once the buses are allotted to these states, the government company Convergence Energy Service Limited will undertake the process of procuring the buses through competitive tendering.
The government has approved this at a time when electric bus sales remained slow in FY25. According to data from the Vahan portal, electric bus sales in the country have declined by 5.7%. According to Mint, the adoption of electric buses in FY25 stood at just 4.72 %, the lowest since FY22’s 9.34%.
A report by Mint quoted Aanchal Jain, Chief Executive Officer of PMI Electro Mobility, saying, “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.”
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