In a decisive push towards green transportation, the Ministry of Heavy Industries has announced two transformative schemes to boost the deployment of electric buses (e-buses) across the nation. These initiatives aim to enhance urban mobility while reducing carbon emissions, marking a significant step in India’s electric vehicle (EV) revolution.
1. PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme
Launched on September 29, 2024, the PM E-DRIVE scheme focuses on incentivizing the sale and adoption of a wide range of EV categories, including e-bikes, e-rickshaws, e-trucks, e-ambulances, and e-buses. With a substantial budget of ₹10,900 crores, the scheme allocates ₹4,391 crores specifically for the deployment of 14,028 e-buses.
E-buses under this scheme will be operated through an operational model, either on an OPEX (Operating Expenditure) or Gross Cost Contract (GCC) basis. These contracts will be executed in partnership with State or City Transport Undertakings (STUs), ensuring seamless integration into existing public transportation systems.
2. PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme
Announced on October 28, 2024, this scheme has an outlay of ₹3,435.33 crores and aims to facilitate the deployment of over 38,000 e-buses. Its primary objective is to offer a payment security mechanism for e-bus operators, safeguarding them against defaults by Public Transport Authorities (PTAs). This initiative is expected to bolster confidence among private operators, enabling smoother implementation of e-bus operations nationwide.
3. PM-eBus Sewa Scheme for Urban Transformation
In addition to the above schemes, the Ministry of Housing and Urban Affairs has introduced the PM-eBus Sewa Scheme, targeting the augmentation of city bus services through the deployment of 10,000 e-buses under a public-private partnership (PPP) model.
This scheme provides comprehensive financial support, including:
- Development of Infrastructure: 100% Central Assistance (CA) for behind-the-meter power infrastructure and varying CA percentages (60%, 90%, or 100%) for depot construction, depending on the region.
- Operational Support: Funding on a per-kilometer basis for a duration of 10 years or until March 2037, whichever is earlier. Rates are set at ₹24 for standard buses (12m), ₹22 for midi buses (9m), and ₹20 for mini buses (7m).
A Unified Approach
Notably, there is no state or union territory-specific budget allocation for these schemes, emphasizing a unified national approach. Together, these initiatives aim to reduce dependency on fossil fuels, improve air quality, and modernize urban transportation infrastructure.
This information was shared by Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, in a written reply to the Rajya Sabha. As these schemes roll out, they promise to transform India’s urban landscapes and propel the country towards a sustainable future.
Funds Sanctioned and Released to States/UTs Under PM-eBus Sewa Scheme –
and released to States/UTs under PM-eBus Sewa Scheme is as under:
| Sr. No | State | Amount Sanctioned(in Rs. Crore) | Amount Released(in Rs. Crore) |
| 1 | Bihar | 112.46 | 87.55 |
| 2 | Chandigarh | 11.87 | 11.87 |
| 3 | Jammu & Kashmir | 42.37 | – |
| 4 | Gujarat | 69.02 | 9.06 |
| 5 | Haryana | 22.13 | – |
| 6 | Ladakh | 0.00 | – |
| 7 | Madhya Pradesh | 57.12 | – |
| 8 | Assam | 16.65 | 6.47 |
| 9 | Chhattisgarh | 52.75 | 30.19 |
| 10 | Maharashtra | 347.94 | 200.18 |
| 11 | Meghalaya | 12.98 | – |
| 12 | Odisha | 81.96 | 47.72 |
| 13 | Puducherry | 0.00 | – |
| 14 | Punjab | 45.12 | – |
| 15 | Rajasthan | 84.00 | 44.46 |
| 16 | Uttarakhand | 27.38 | – |
| Total | 983.75 | 437.5 |
