New Delhi: The center will provide subsidies of Delhi, Gujarat, Karnataka and Telangana to push 10,900 electric buses into operation. These buses will hit Ahmedabad, Bengalur, Delhi, Hyderabad and Surrat, the Ministry of the heavy industry said on Thursday.
“From Bengalur to Delhi, they actively receive electric buses to make public transport cleaner, smarter and more efficient,” said the Minister of the Heavy Industry HD Kumaraswamy, who chaired the meeting with the Ministry officials in introduction.
The government assigned 4,500 electric buses to Bengalur, 2,000 to Hyderabad, 2,800 to Delhi, 1,000 to Ahmedabad and 600 Surrat within the e-drive system.
“We are not just allocating electric buses-we are going to the future of the Indian transport system with innovation and environmental consciousness. With close coordination between the Center and States such as Telangana, Karnataka, Delhi and Gujarat, we are determined to meet the PM e-drive promise,” the Union Minister added.
Within the PM E-Drive system, the center plans to provide subsidies to 14,028 buses with allocation approximately £4 391 crore, accounts for almost 40% of scheme expenditure.
This assignment-and has been spent in FY26-is aimed at strengthening green mobility inside the city in nine cities with populations over four million. They are: New Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Calcata, Ahmedabad, Surrat and Pune.
Mint reported May 5 that due to the tremendous demand for electric buses from the states, they might have to settle for less than they demanded.
The approximate cost of an electric bus is about £1 crore from which the government subsidizes £20-35 Lakh, according to the scheme notice.
Buses longer than 6 m to 8 meters get a maximum subsidy £20 lakh; those over 8 meters to 10 meters, subsidies are limited to £25 lakh; While those over 10 meters to 12 meters get maximum motivation £35 Lakh.
After signing the Memorandum of Understanding between State Transport and Selected Applicant, the Ministry of heavy industry will provide 20% of the agreed amount of the subsidy as an advance.
This will be followed by another 30% of the subsidy as soon as the operations begin, while the quarter will be provided after six months of successful operations. The remaining quarter will be provided after 18 successful months of commercial operations.
After the electric buses to be granted to these countries, a competitive bidding procedure will be carried out by State-Run Convergence Energy Services LTD for state transport services for the purchase of these buses, according to the instructions for the scheme.
Government approval of electric buses in five of the nine cities under PM E-drive came after a slight FY25. The number of electric buses sold in the country fell by 5.7% to 3,314 in FY25, compared to 3,516 in FY24, showed data on the Vahan portal. Minting on 16 March 2025 reported that the acceptance of electric buses in FY25 to 4.72% was the lowest of 9.34% in FY22.
“The PM E-drive initiative is a defining step in the Indian journey to sustainable public transport. Since cities like Delhi, Bengaluru and Hyderabad are developing their electric bus networks, we are proud to provide reliable, advanced technologies adapted to modern city needs.
(Tagstotranslate) pm e drive
