Archive · 20 Nov 2025
Delhi's 2,800 Electric Bus Allocation at Risk Due to Unmet Scheme Requirement
Delhi might lose its 2,800 electric bus allocation because it hasn't set up a direct debit system with the RBI.
This system is needed to pay bus manufacturers on time.
The government is trying to fix this before contracts start in January 2026.
Delhi has not fulfilled a crucial condition for its 2,800 electric bus allocation under the PM E-Drive scheme
The city has not established a Direct Debit Mandate (DDM) with the Reserve Bank of India (RBI)
The DDM is critical for the Payment Security Mechanism (PSM), ensuring timely payments to private bus manufacturers
Multiple ministries and the RBI are in urgent talks to resolve the issue, likely mirroring Puducherry's solution
Delhi has until January 2026 to secure the PSM before starting e-bus contracts
- Who
- Delhi government, Ministry of Heavy Industries, Reserve Bank of India, Union Home Ministry
- What
- Failed to establish Direct Debit Mandate for PM E-Drive scheme
- When
- Issue needs to be resolved before January 2026
- Where
- New Delhi
- Why
- To ensure timely payments to private bus manufacturers and build industry confidence
Delhi Government
Union Home Ministry
Authority Over Consolidated Fund
Delhi Government
Delhi wants to use its own consolidated fund for the mandate
Union Home Ministry
Union Home Ministry has oversight over Delhi's finances
- Scheme
- PM E-Drive
- Buses Allocated to Delhi
- 2,800
- Total Buses Under Scheme
- 14,028
- Cities Covered
- Delhi, Ahmedabad, Surat, Pune, Mumbai, Hyderabad, Bengaluru, Chennai, Kolkata
- Buses Tendered So Far
- 10,900 (Delhi, Ahmedabad, Surat, Hyderabad, Bengaluru)