Centre approves subsidy for 9,800 e-buses in Bengaluru, Hyderabad

The Ministry of Heavy Industries (MHI) has approved subsidies for 9,800 electric buses under the PM E-Drive scheme in Bengaluru and Hyderabad. Bengaluru will receive 7,000 e-buses, while Hyderabad has been allotted 2,800, as per reports.

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This allocation accounts for nearly 70% of the government’s target of subsidizing 14,028 e-buses in nine metro cities by FY26 under the ₹10,900-crore PM E-Drive scheme. The ₹4,391-crore e-bus subsidy represents about 40% of the scheme’s total outlay, making it the largest component of the initiative.

The MHI is awaiting demand certificates from other cities before approving further subsidies. States must submit these certificates along with an acceptance of the Direct Debit Mandate (DDM) under the e-Bus Sewa Payment Security Mechanism (e-PSM).

The PM E-Drive and ePSM schemes, both approved in September 2024, aim to facilitate the smooth adoption of e-buses. Initially, Delhi, Mumbai, Pune, Ahmedabad, Surat, Kolkata, and Chennai were also designated for e-bus subsidies. The maximum subsidy per e-bus ranges from ₹20-35 lakh.

Experts warn that supply chain constraints for batteries and a shortage of trained drivers may pose operational challenges. Training programs will be essential as public transport fleets transition to electric mobility.