In a major push toward clean and sustainable public transportation, the Government of India has approved an allocation of ₹4,391 crore for the deployment of 14,028 electric buses (e-buses) under the PM E-DRIVE scheme. The initiative aims to significantly reduce emissions from urban public transport systems while accelerating the adoption of electric mobility across India’s largest cities.
The funding, sanctioned by the Ministry of Heavy Industries, is part of the government’s broader strategy to decarbonize urban transport, improve air quality, and promote energy-efficient mass mobility solutions. The e-buses will be deployed across nine major Indian cities with populations exceeding 40 lakh, including Delhi, Mumbai, Bengaluru, Hyderabad, Ahmedabad, Chennai, Kolkata, Pune, and Surat.
Bengaluru to Receive the Largest Allocation
Among the selected cities, Bengaluru has received the largest allocation, with 4,500 electric buses earmarked to strengthen its public transport network and curb vehicular pollution. Other metropolitan cities will also see substantial fleet additions, supporting state and city transport undertakings in meeting rising commuter demand through cleaner alternatives.
CESL to Drive Centralised Procurement
The procurement of e-buses under the PM E-DRIVE programme will be undertaken by Convergence Energy Services Limited (CESL), following a competitive bidding and aggregation model. This approach is designed to achieve economies of scale, reduce procurement costs, and ensure standardisation across fleets.
Deployment and operations will be managed by state and city transport authorities under operational expenditure (OPEX) or gross cost contract (GCC) models. These structures are intended to minimise the upfront capital burden on transport undertakings while ensuring efficient fleet operations and maintenance.
₹2,000 Crore Allocated for EV Charging Infrastructure
In addition to the e-bus deployment, the government has also earmarked ₹2,000 crore under the PM E-DRIVE scheme for the development of public electric vehicle charging infrastructure (EVPCS) across the country. The funding will support the installation of charging stations in metropolitan areas, along highways, and along key transport corridors.
The EV charging sector remains unlicensed, encouraging private sector participation and investment. To streamline implementation, the government issued detailed operational guidelines for EV charging stations on September 26, 2025, providing clarity on standards, operations, and accessibility.
Advancing India’s Clean Mobility Goals
According to the Ministry of Heavy Industries, the large-scale adoption of electric buses under PM E-DRIVE is expected to play a crucial role in cutting carbon emissions, reducing dependence on fossil fuels, and improving overall urban air quality. Electric buses also offer lower operating costs and quieter operations, making them well suited for dense urban environments.
The PM E-DRIVE initiative aligns closely with India’s long-term climate commitments and its ambition to build a modern, sustainable, and inclusive public transportation ecosystem. With thousands of e-buses set to hit city roads, the programme marks a significant milestone in India’s transition toward low-emission mobility and greener cities.
Click Here to get the latest EV news and exclusive updates from EV Mechanica on WhatsApp!