The Government of India has introduced the largest electric mobility project to date the procurement of 10,900 electric buses as part of PM e-Bus Sewa (E-Drive Phase 1). This is a nation-wide program, and led by Convergence Energy Services Limited (CESL). This is the largest single purchase of electric buses in the country, and it represents a paradigm shift in India’s ambition for the future of urban public transport.
The tender is under a procurement proposal that was announced in July of 2025. The study centers around five large cities—Bengaluru, Delhi, Hyderabad, Ahmedabad, and Surat and it presents an integrated, coordinated, and sustainable system of mass transport.
A Watershed Moment in Electric Bus Procurement History
The CESL tender under the PM e-Bus Sewa program is a critical point in India’s clean mobility roadmap. By issuing a single consolidated tender for electric bus procurement of 10,900 electric buses, the government is showing a clear signal of intent to move fast towards the adoption of green transport solutions at scale and bring predictability to the EV ecosystem.
The city-wise allocation under this electric bus procurement is as follows:
- Bengaluru: 4,500 electric buses
- Delhi: 2,800 electric buses
- Hyderabad: 2,000 electric buses
- Ahmedabad: 1,000 electric buses
- Surat: 600 electric buses
The scale of this electric bus procurement has never been attempted before in the country.It emphasizes an operational alignment of national policy directives, compliance requirements by state governments and stakeholder readiness.
PM e-Bus Sewa: A Comprehensive Approach
The electric bus purchase from CESL relates to the broader PM e-Bus Sewa program launched by the Ministry of Housing and Urban Affairs (MoHUA) in 2023 to roll out 10,000+ electric buses in 100 cities throughout India, with a focus on a Public-Private Partnership (PPP) model. The present tender not only achieves but surpasses this goal
The focus is not only on vehicle acquisition. Vehicle acquisition for an electric bus procurement tender has:
- Bus supply
- Operation and maintenance
- Civil and electrical infrastructure
- Charging depots
- Manpower and driver management
This model of provisioning electric bus procurement provides long-term sustainability to the electric bus procurement plan, across the entire deployment cycle.
Financing and Contract Model
The procurement of electric buses under a Gross Cost Contract (GCC) model, where private operators deliver, operate and maintain the buses, and with payment being made by the government at a fixed price per kilometre, provides transparency, accountability, and efficiency to vehicle operations.
CESL has established an Earnest Money Deposit (EMD) of ₹312.86 crore for all five cities to ensure that parties take their bids seriously. The process will also be single-stage, two-envelope and will allow for competitive pricing but also requires bidders to meet minimum technical requirements.
This structure reduces risks for STUs and provides private players with the ability to grow their operations without having an unpredictable revenue stream. It makes electric bus procurement attractive to both large OEMs and new entrants in the EV mobility space.
Driving Urban Mobility Reform
India’s public transport systems are overstretched and underfunded. Most cities fall short of the ideal bus-to-population ratio. According to data, Indian cities average around 0.26 buses per 1,000 people, whereas the recommended global standard is 0.6.
This ambitious electric bus procurement represents a direct effort to:
- Enhance public transport capacity
- Alleviate overcrowding
- Decrease pollution
- Enhance user experience
In addition, these electric buses are expected to include elements such as real-time GPS tracking, CCTV surveillance, panic buttons, and air-conditioning—an overall enhancement to the user experience.
The Renewable Link: Sustainable Charging Infrastructure
What makes this electric bus procurement distinct is the concept of charging with renewables and battery storage as part of the complete charging ecosystem. Cities should expect to build depot infrastructure using a combination of grid supply and renewable energy, such as solar electricity.
Battery storage is fundamental to achieving grid stability, lowering operational costs, and providing energy security for overnight or peak hour operations. By tying the electric bus procurement to clean power, the government is closing the loop in sustainable urban transport.
This approach fits neatly into India’s larger energy aspirations within the National Electric Mobility Mission Plan (NEMMP) and its Energy Storage Mission and illustrates a developing synergy between mobility policy and energy policy.
Boost to Make in India and Job Creation
The scale of electric bus procurement also acts as a demand anchor for India’s EV manufacturing ecosystem. Domestic OEMs now have long-term visibility into future orders, which can drive investments in:
- Localised bus manufacturing
- Battery production
- Power electronics and drivetrain components
- Skilled manpower
Each electric bus procurement cycle has the potential to generate hundreds of jobs—from vehicle assembly and charger installation to service, maintenance, and depot operations. This creates a ripple effect across the economy.
CESL has explicitly encouraged Indian manufacturers and joint ventures to participate in the bid, further boosting the “Make in India” movement.
Challenges on the Road Ahead
Despite the promise, large-scale electric bus procurement comes with challenges:
- Grid readiness: Many urban areas may not have the electrical infrastructure to support fast charging at scale.
- Depot availability: Acquiring land for depots in densely populated cities like Delhi and Bengaluru is difficult.
- Operator capability: Many STUs lack the digital tools to monitor and manage high-volume EV fleets.
- Battery lifecycle management: The scheme must also address end-of-life handling and recycling for EV batteries.
However, the government and CESL are actively engaging stakeholders through pre-bid meetings, workshops, and capacity-building efforts to ensure smooth execution of the electric bus procurement plan.
A Template for Future-Ready Public Transport
This tender is not just about buying buses—it’s about creating a template for urban mobility transformation. From contract structure and clean energy integration to digital fleet management and data-driven performance tracking, this electric bus procurement shows how a government-led program can be both scalable and sustainable.
If successful, it could become the blueprint for other developing countries facing similar urban transport and climate challenges.
Industry Response and Next Steps
Initial reactions from OEMs, operators, and policy experts have been overwhelmingly positive. Companies such as Tata Motors, Switch Mobility, Olectra Greentech, and PMI Electro Mobility are expected to participate in this electric bus procurement round.
The deadline for bid submission is set for August 2025, with evaluations and awards likely to be completed by October. Bus deliveries and operations are expected to begin in early 2026.
CESL has indicated that this will not be a one-off initiative. Additional phases of electric bus procurement may follow based on city readiness, funding availability, and operator capacity.
Conclusion
India’s 10,900-unit electric bus procurement initiative under PM e-Bus Sewa is more than just a policy push—it’s a national mission. It integrates clean energy, financing innovation, infrastructure planning, and Make in India to build a transport future that’s greener, smarter, and more inclusive.
As cities grow and pollution concerns escalate, the transition to electric public transport will define the sustainability journey of urban India. This tender represents a bold, structured, and visionary step in that direction.