Karnataka will implement a ₹2,000 crore electric bus programme as part of its efforts to expand sustainable public transport. Under the Karnataka Electric Bus Programme (KEBP), 32 depots of the Bengaluru Metropolitan Transport Corporation (BMTC) and 62 depots of other State Road Transport Corporations will be developed to support the growing fleet of electric buses.
The state plans to induct 4,000 electric buses into public transport services, alongside 1,000 additional diesel buses in 2026–27 to strengthen overall transport capacity. The programme receives financial assistance from the World Bank to support infrastructure development and fleet expansion.
The budget also includes ₹1,271 crore for salary arrears and revisions of State Road Transport Corporation employees, covering the period from January 1, 2021, to February 28, 2023, with revised salaries effective from April 1, 2025.
The Transport Department reported an 8.5% rise in revenue, collecting ₹11,630 crore up to February 2026, and has set a target of ₹15,500 crore for the 2026–27 fiscal year. Vehicle sales in Karnataka have shown a recovery, with two-wheeler sales up 13% and car sales up 4% compared to the previous year.
The electric bus initiative is part of Karnataka’s broader strategy to promote environmentally friendly and sustainable urban mobility while upgrading infrastructure and ensuring efficient public transport services.

