Centre plans to procure 14,028 electric buses in multiple tranches

The Centre has received a demand of 15,400 e-buses from four states (Gujarat, Telangana, Karnataka and Delhi,) of total 7, including around 2,500 from Delhi

The Centre is planning to procure the 14,028 electric buses (e-buses) it had promised to buy for states to electrify public transport in multiple tranches instead of doing it at one go because some states are yet to send in requirements, according to a senior government official.

 

The procurement is part of the heavy industries ministry’s plan to spend around 40 per cent of the ₹10,900 crore PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme for electric public transport. The ministry had allocated ₹4,391 crore to buy 14,028 e-buses for states at a subsidised price by the end of 2025-26.

 

While the Centre is still waiting for Maharashtra, Tamil Nadu, and West Bengal to send in their demands, Delhi, Gujarat, Telangana, and Karnataka have already sent in demands of 15,400 e-buses. The Centre is likely to place its first tender for 10,000 buses, according to the official.

 

“Our capacity of 14,028 e-buses has already been surpassed. So, we are thinking of issuing a tender on a pro-rata basis. We will leave some buses for the states that haven’t come to us with their demands yet and probably issue a tender of 10,000-11,000 buses,” the official said.

 

The Centre, however, is yet to decide how many buses will be allocated to each state, the official added. Convergence Energy Services Limited, a subsidiary of Energy Efficiency Services Limited, is ready with its first tender, and will process it as soon as it gets a go-ahead from the heavy industries ministry.

 

Queries sent to the spokesperson and secretary of the heavy industries ministry remained unanswered until the time of going to press.

 

As for determining the rate of subsidy, the official said that there is a formula and the amount will depend on the cost of the buses. The cost of a bus will factor in the number of years the bus is used along with the capital cost. For example, if the bid is ₹60-65 per kilometre (km) and the bus has to run for 200 km daily, the cost of the bus will be calculated on the basis of these factors.

 

“When we have the cost of the bus, we will have the subsidy number. (Though) the subsidy may be a little lower because the tender will prefer a lower quote,” the official said. The subsidy ceilings for nine metre, 12 metre, and 15 metre buses are ₹20 lakh, ₹25 lakh, and ₹35 lakh, respectively.

 

Though, if there is a tender for a 15 metre bus, the subsidy is likely to be less than ₹35 lakh. As it was in case of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) phase-II scheme when the subsidy ceilings were set at ₹35 lakh, ₹45 lakh, and ₹55 lakh, the aggregated subsidy was around ₹42 lakh through the lifecycle of the scheme. The final subsidy will depend on the tender.