CESL’s mega tender for 10.9K PM e-buses gains nationwide traction

Hyderabad: India’selectric mobility revolution is gaining unprecedented traction as the Convergence Energy Services Limited (CESL), a Government of India enterprise under the Ministry of Power, receives an overwhelming response to its mega tender for 10,900 electric buses under the Prime Minister’s PM e-Bus Sewa Programme.

A CESL communique on Sunday said the initiative, part of the broader National Movement for PM e-Drive, marks a significant milestone in India’s journey toward achieving ‘Net Zero Emissions by 2070’.

The tender, which spans five major metropolitan cities, is the largest electric bus procurement effort in the country’s history. The bid submission deadline has been extended to November 6, 2025, following extensive pre-bid consultations and clarifications.

Hyderabad, one of India’s largest and fastest-growing cities, has been allotted 2,000 PM e-Buses, reflecting its strategic importance in the national electric mobility roadmap. For Delhi, 2,800 buses were allotted, followed by Bengaluru (4,500), Ahmedabad (1,000), and Surat (600). These allocations aim to modernize urban transport systems, reduce emissions, and provide cleaner, quieter alternatives to traditional diesel and CNG fleets.

CESL is acting as the nodal agency, playing the role in aggregating demand, standardising procurement, and facilitating infrastructure development. The successful bidders will be responsible for setting up depots and charging infrastructure, ensuring seamless integration into city transport networks.

It may e mentioned here, since 2022, CESL has emerged as the country’s most experienced public-sector body in electric bus contracting, having awarded 17,838 buses across various scheme components. This includes FAME-II: 3,472 buses; National Electric Bus Programme (NEBP): 6,465 buses; PM e-Bus Sewa: 6,743 buses, and City-specific projects (Delhi & Bengaluru): 1,158 buses.

The PM E-DRIVE Scheme, launched in June 2025, represents India’s next leap forward in clean mobility. With Rs 4,391 crore earmarked for deploying 14,028 e-buses across nine cities, and an additional Rs 3,435 crore allocated under the Payment Security Mechanism (PSM), the government is ensuring financial stability and investor confidence.

CESL’s demand aggregation model has successfully reduced Gross Cost Contract (GCC) rates below diesel and CNG levels, making electric buses economically viable despite higher upfront costs. This model also aligns bus specifications and operational parameters with local needs, ensuring efficient deployment.

“CESL is leading one of the world’s largest electric bus transitions. By combining policy intent, financial security, and collaborative implementation with states, we are ensuring that India’s public transport becomes cleaner, smarter, and more resilient,” said a CESL spokesperson.

As India moves toward its Net Zero vision, the PM e-Bus Sewa and PM E-DRIVE initiatives are not only transforming mobility but also strengthening the domestic EV manufacturing ecosystem, supporting Atmanirbhar Bharat, and delivering cleaner air for millions of commuters.