Prime Minister Narendra Modi will gift on Monday two such buses to the Lok Sabha for ferrying MPs.
The project is a brain-child of Road Transport and Highways Minister Nitin Gadkari.
"Two 15-seater buses electric buses, converted to battery from diesel will be flagged off by Prime Minister Modi in presence of Lok Sabha Speaker Sumitra Mahajan and Gadkari on December 21 for MPs," an official source said.
The Road Transport and Highways Ministry is in touch with State Transport Corporations from Maharashtra, Karnataka and Delhi for conversion of 10 diesel buses into electric ones, the source added.
The source said project involves about Rs 10 crore expenditure and after the success of the pilot project steps would be taken for conversion of existing diesel buses across the country.
Indian Space Research Organisation, IIT Kharagpur and IIT Madras are already in the process of developing such lithium-ion batteries.
The lithium-ion batteries would be used to transform existing diesel buses into electric, Gadkari had earlier said.
Indian Space Research Organisation (ISRO) scientists, in collaboration with the ministry and other wings, have developed the batteries costing Rs 5 lakh -- about a tenth of the astronomical Rs 55 lakh for imported ones, he has said.
Pollution is an issue which concerns the government deeply and the ministry is committed to addressing all such issues related to Delhi within two years, the Minister said.
"We plan to convert 1.5 lakh buses in the country which currently run on diesel to electric," the Minister has said.
He has also said that farmers will be encouraged to diversify towards production of bio-fuel from sugar and other products, which in turn can reap rich dividends and contribute significantly to the economic development by cutting on India's huge crude import bills to the tune of Rs 8 lakh crore per annum.
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