PM e-Buses draw national attention, set to transform urban transport
Scheme expected to cut over 4 million tonnes of CO2 emissions; CESL concludes India’s largest e-bus tender
Vijayawada: The successful conclusion of India’s largest mega tender for 10,900 electric buses under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme has received nationwide acclaim, with Convergence Energy Services Limited (CESL) estimating a reduction of over 4 million tonnes of CO₂ emissions across five major cities.
Under the PM E-DRIVE Scheme, 14,028 electric buses have been sanctioned nationwide. During Phase I, tenders for 10,900 buses were issued, with technical bids opened on November 14, involving 16 bidders, and price bids on December 23. The procurement covers major cities and State Transport Undertakings, including Bengaluru (4,500 buses), Delhi (2,800), Hyderabad (2,000), Surat (1,600), and Ahmedabad (1,600), featuring AC and non-AC variants across standard floor, low-floor, and BRT models.
CESL, a subsidiary of Energy Efficiency Services Limited (EESL) and the Government of India’s nominated agency, stated that the large-scale deployment of e-buses will replace thousands of diesel buses, significantly improving air quality, reducing noise pollution, and enhancing overall urban living standards. Expressing gratitude to the Ministry of Heavy Industries (MHI) and the Ministry of Power (MoP), CESL and EESL CEO Akhilesh Kumar Dixit said the Ministries’ full support enabled transparent demand aggregation and a competitive tendering process. He noted that the initiative would modernise India’s public transport system while providing a cleaner, quieter, and cost-effective alternative to fossil fuel-based vehicles.
The CESL CEO added that its demand aggregation model discovered Gross Cost Contract (GCC) rates lower than those previously achieved by individual cities, making e-buses financially competitive with CNG and diesel alternatives.
Also, he said under the PM-eBus Sewa Scheme of the Ministry of Housing and Urban Affairs (MoHUA), 750 electric buses have been allocated to Andhra Pradesh, including 150 for Visakhapatnam. The APSRTC has already issued a Letter of Award to the successful operator, paving the way for accelerated deployment of electric buses in the State, he explained.
