The Union government has declined Telangana’s request to procure 2,800 electric buses under the PM e‑Drive scheme, approving only 2,000 units for deployment in Hyderabad.
During a Lok Sabha session, Union Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma stated that Telangana’s proposal involved a Hybrid Gross Cost Contract (GCC) model, where Original Equipment Manufacturers (OEMs) supply buses while TSRTC manages operations. This structure does not align with the standard OPEX/GCC framework supported under the scheme, which follows a competitive bidding route through Convergence Energy Services Limited (CESL).
Telangana’s Transport Minister Ponnam Prabhakar had requested an additional 800 electric buses to serve routes around Hyderabad’s Outer Ring Road. Although the Centre acknowledged the demand, it did not accommodate the request, citing the hybrid model and retrofit suggestions as outside the current policy scope.
Background: PM e‑Drive Scheme Allocation
The PM e‑Drive scheme, launched by the Ministry of Heavy Industries, aims to deploy 14,028 electric buses nationwide by March 2026, supported by a budget of ₹10,900 crore. Notable allocations include:
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2,000 buses for Hyderabad
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2,800 for Delhi
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4,500 for Bengaluru
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1,000 for Ahmedabad
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600 for Surat
What’s Next
Chief Minister A. Revanth Reddy, along with ministers Uttam Kumar Reddy and Ponnam Prabhakar, has appealed for reconsideration. They’ve also requested permission to retrofit existing diesel buses with electric kits and expand Telangana’s participation in the scheme’s Payment Security Mechanism (PSM). However, current guidelines do not support such proposals.
Summary Table
| Item | Detail |
|---|---|
| Requested Electric Buses | 2,800 |
| Sanctioned Units | 2,000 |
| Pending Approval | 800 |
| Model Proposed by State | Hybrid GCC (OEM-supplied, TSRTC-operated) |
| Model Allowed by Centre | Standard OPEX/GCC via CESL tender |
| Retrofitting Proposal | Not approved under existing scheme |
Telangana continues to advocate for full approval to improve public mobility and environmental sustainability in the capital region.