The Union government has awarded the first contract under the PM E-Drive Scheme for deploying electric buses in Bengaluru, marking a major milestone in India’s public electric mobility push.

Pune-based EV manufacturer EKA Mobility and Ahmedabad-based mobility services company Chartered Speed have secured the Letter of Confirmation of Quantity to deploy 1,750 electric buses in the city. The contract was awarded through Convergence Energy Services Limited, a Ministry of Power entity, which floated a mega tender in November 2025 to lease 10,900 e-buses under the gross cost contract model.

Bengaluru will receive the largest share with 4,500 buses, followed by Delhi with 2,800, Hyderabad with 2,000, Ahmedabad with 1,000 and Surat with 600. The procurement drive is being positioned as India’s largest-ever electric bus induction programme.

Under the PM E-Drive Scheme, the Centre will provide subsidies of Rs 3.5 million per standard bus (10–12 metres), Rs 2.5 million per midi bus (8–10 metres) and Rs 2 million per minibus (6–8 metres). Only e-buses with an ex-factory price below Rs 20 million are eligible for incentives.

The induction of new buses is expected to significantly expand the fleet of the Bengaluru Metropolitan Transport Corporation (BMTC), which currently operates around 6,740 vehicles, including 1,700 e-buses. The 1,750-bus allocation accounts for nearly 39 per cent of Bengaluru’s total planned induction of 4,500 electric buses under the PM E-Drive programme.

Under the contract, EKA Mobility will manufacture the buses, while Chartered Speed will create charging infrastructure at BMTC depots, deploy drivers and maintain the vehicles. BMTC will provide conductors for operations.

However, concerns have been raised over the quality and performance of electric buses deployed under earlier schemes. In October, Karnataka Transport Minister Ramalinga Reddy flagged issues such as technical failures, battery-related breakdowns, accidents, poor maintenance and driver shortages, calling for stricter contractual provisions and joint compliance monitoring mechanisms. It remains unclear whether these concerns have been fully addressed in the new contract.

The latest deployment underscores Bengaluru’s growing role in India’s electric public transport transition, aligning with national decarbonisation goals and Karnataka’s clean mobility strategy.