+
India approves 10,000 electric buses for sustainable urban transport
ECONOMY & POLICY

India approves 10,000 electric buses for sustainable urban transport

The Union Cabinet has given the green light to the "PM-eBus Sewa" initiative, a substantial step towards bolstering sustainable urban transport and economic growth. This program involves the deployment of 10,000 electric buses (e-buses) across India, with a budget of ₹576.13 billion ($6.9 billion). 

Targeting cities with a population of 300,000 and above according to the 2011 census, along with union territory capitals, the northeastern region, and hilly states, the PM-eBus Sewa program aims to provide e-bus services to locations currently lacking such infrastructure. This expansion into underserved areas intends to bridge the urban-rural mobility gap, improve connectivity, and enhance accessibility for all residents.

Anticipated to generate between 45,000 to 55,000 direct jobs in city bus operations, the initiative comprises two key segments:

Segment A: Augmenting City Bus Services**
This aspect focuses on bolstering city bus services across 169 cities through a Public Private Partnership (PPP) model. It encompasses not only introducing e-buses but also developing essential operational infrastructure, including depot upgrades and behind-the-meter power facilities for charging e-buses.

Segment B: Green Urban Mobility Initiatives (GUMI), Segment B embraces various sustainable measures to enhance urban mobility:

Bus Priority Infrastructure: Creation of bus priority lanes to reduce congestion and enhance transportation efficiency.

Multimodal Interchange Facilities: Seamless connectivity among different modes of transit to promote public transport usage and minimize private vehicle dependency.

Automated Fare Collection Systems: Implementation of National Common Mobility Card (NCMC) systems for automated fare collection, streamlining commuter payments.

Charging Infrastructure: Support for charging infrastructure development, a pivotal element in advancing electric mobility.

This program aligns with intending to accelerate e-mobility adoption and promote cleaner urban transportation. The initiative anticipates reduced noise and air pollution, as well as decreased carbon emissions. Further cost reduction is projected through an efficient EV supply chain and aggregated procurement, boosting e-bus adoption.

The second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, equipped with a ₹55 billion ($665.42 million) subsidy fund, also contributes to the electric mobility drive. The ongoing FAME II program, valid until 2024, extends subsidies to various electric vehicle types.

Convergence Energy Service Limited's recent bidding process highlighted e-buses as a financially viable solution for urban public transport, even without subsidies.

The Union Cabinet has given the green light to the PM-eBus Sewa initiative, a substantial step towards bolstering sustainable urban transport and economic growth. This program involves the deployment of 10,000 electric buses (e-buses) across India, with a budget of ₹576.13 billion ($6.9 billion). Targeting cities with a population of 300,000 and above according to the 2011 census, along with union territory capitals, the northeastern region, and hilly states, the PM-eBus Sewa program aims to provide e-bus services to locations currently lacking such infrastructure. This expansion into underserved areas intends to bridge the urban-rural mobility gap, improve connectivity, and enhance accessibility for all residents.Anticipated to generate between 45,000 to 55,000 direct jobs in city bus operations, the initiative comprises two key segments:Segment A: Augmenting City Bus Services**This aspect focuses on bolstering city bus services across 169 cities through a Public Private Partnership (PPP) model. It encompasses not only introducing e-buses but also developing essential operational infrastructure, including depot upgrades and behind-the-meter power facilities for charging e-buses.Segment B: Green Urban Mobility Initiatives (GUMI), Segment B embraces various sustainable measures to enhance urban mobility:Bus Priority Infrastructure: Creation of bus priority lanes to reduce congestion and enhance transportation efficiency.Multimodal Interchange Facilities: Seamless connectivity among different modes of transit to promote public transport usage and minimize private vehicle dependency.Automated Fare Collection Systems: Implementation of National Common Mobility Card (NCMC) systems for automated fare collection, streamlining commuter payments.Charging Infrastructure: Support for charging infrastructure development, a pivotal element in advancing electric mobility.This program aligns with intending to accelerate e-mobility adoption and promote cleaner urban transportation. The initiative anticipates reduced noise and air pollution, as well as decreased carbon emissions. Further cost reduction is projected through an efficient EV supply chain and aggregated procurement, boosting e-bus adoption.The second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, equipped with a ₹55 billion ($665.42 million) subsidy fund, also contributes to the electric mobility drive. The ongoing FAME II program, valid until 2024, extends subsidies to various electric vehicle types.Convergence Energy Service Limited's recent bidding process highlighted e-buses as a financially viable solution for urban public transport, even without subsidies.

Next Story
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App