Metros' snub may force e-bus sops shift to intracity service

Economic Times

25-05-2025

The Centre is considering subsidizing nearly 4,000 electric buses for interstate or intracity routes after Chennai, Mumbai, and Kolkata opted out of the PM e-DRIVE scheme. While Delhi awaits 2,800 e-buses pending compliance with scheme norms, the heavy industries ministry has allocated buses to Bengaluru, Hyderabad, Ahmedabad, and Surat. Bids for 10,900 e-buses are expected soon.
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With three metros opting out of the PM e-DRIVE scheme , the Centre may subsidise nearly 4,000 electric buses (e-buses) for use on interstate or intracity routes, a senior official said.The heavy industries ministry received requests for around 10,900 e-buses under PM e-DRIVE, lower than the target of 14,028 e-buses. These buses are meant for large cities to improve their internal public transportation networks."Chennai, Mumbai, and Kolkata have refused to participate for their own reasons," the official told ET, adding that the remaining around 4,000 buses can be considered for intercity, or interstate uses if the Centre doesn't get additional demand from more cities.Both Chennai and Mumbai are said to be planning their own e-bus procurement schemes. Also, the West Bengal government is said to have refused PM e-DRIVE e-buses since it is yet to receive units promised under earlier schemes.While the Delhi government's request has been received, its wait for around 2,800 new e-buses may get a little longer with the state yet to fully comply with PM e-DRIVE scheme norms. The state needs to create a direct debit mandate (DDM) with the Reserve Bank of India (RBI), which would allow the Centre to recover dues if case of delay in payments to e-bus suppliers.A DDM ensures the Centre is able to pay e-bus suppliers if states or their transport utilities delay releasing funds. Irregular payments had spooked e-buses suppliers, leading to a tepid response in earlier tenders. Under the PM e-DRIVE scheme, the Centre procures e-buses on behalf of states, who then make payments to suppliers."Delhi government has started the process of creating an account with the RBI for facilitating the DDM. They will get e-buses after complying with these norms," the official said.The heavy industries ministry has allocated around 4,500 e-buses for Bengaluru, 2,000 to Hyderabad, 2,800 to Delhi, 1,000 to Ahmedabad, and 600 to Surat under the current phase of the PM e-Drive scheme. Bids for these 10,900 e-buses are expected to be called by the Convergence Energy Services Ltd (CESL), a central government-controlled entity, in a few weeks.The Centre has earmarked ₹ 10,900 crore over a two-year period through March 2026 for deploying e-buses in urban areas.