Archive · 9 Nov 2025
India Considers E-Bus Allocations for Mumbai, Pune, Hyderabad Under PM E-Drive Scheme
The Indian government is planning to give a lot of new electric buses to major cities.
Mumbai could get 1,000, Pune 800, and Hyderabad 800.
This is part of a big plan called PM E-Drive to make public transport cleaner and use less fuel.
Some states, like Maharashtra, had to sort out their payment plans first to be eligible.
This plan also helps make buses cheaper to buy and run.
It's important because buses travel a lot and can cause a lot of pollution if they run on diesel.
While the government is pushing for these buses, there are some challenges like needing enough places to charge them and making sure bus companies can afford to run them.
The overall goal is to have many more electric buses on the road to help the environment and reduce reliance on imported fuel.
The Ministry of Heavy Industries (MHI) is considering allocating 1,000 e-buses to Mumbai, 800 to Pune, and 800 to Hyderabad in the second phase of the ₹10,900 crore PM E-Drive scheme.
Maharashtra's payment security conditions for the scheme have been fulfilled, paving the way for e-bus allocations to Mumbai and Pune.
The PM E-Drive scheme aims to deploy 14,028 electric buses in nine cities to reduce costs, carbon emissions, and fuel import dependence.
Deployment challenges include inadequate charging infrastructure and stringent conditions for bus manufacturers under the Gross Cost Contract (GCC) model.
Maharashtra is a leading state in e-bus adoption, with a significant rise in sales and being recognized for its electric mobility progress.
- Who
- Ministry of Heavy Industries (MHI), state governments of Maharashtra and Telangana.
- What
- Considering allocations of 1,000 electric buses for Mumbai, 800 for Pune, and 800 for Hyderabad under the second phase of the PM E-Drive scheme.
- When
- Second phase tenders are being considered after Maharashtra fulfilled payment security conditions in September; ongoing process.
- Where
- Mumbai, Pune (Maharashtra), and Hyderabad (Telangana) are potential beneficiaries.
- Why
- To reduce vehicular emissions, lower fuel import dependence, and promote cleaner public transportation.
Government Perspective
Industry Concerns
Implementation Hurdles
Government Perspective
The government is actively working on allocating e-buses and has noted that states like Maharashtra have fulfilled payment security conditions. The PM E-Drive scheme aims to reduce costs and emissions.
Industry Concerns
Concerns exist regarding inadequate charging infrastructure, high costs, and stringent conditions for bus manufacturers, as well as the asset-heavy gross cost contract (GCC) model which requires manufacturers to retain ownership and bear operating costs.
Payment Security Mechanism
Government Perspective
Maharashtra has now met the scheme's payment security demands, which is a prerequisite for receiving e-buses.
Industry Concerns
Historically, states not fulfilling the payment security conditions faced delays in e-bus procurement.
- Scheme
- PM E-Drive Scheme
- Total Scheme Outlay
- ₹10,900 crore
- Potential E-Bus Allocations
- Mumbai: 1,000, Pune: 800, Hyderabad: 800
- Target Cities (Phase 2)
- Nine cities with populations over 4 million
- Current E-Bus Sales in India (H1 FY26)
- 2,241 units
- E-bus Sales Growth (H1 FY26)
- 37% year-on-year
- Cost per E-bus
- Approx. ₹1-1.25 crore
