States seek 10,000 more e-buses under PM e-DRIVE scheme
What's the story
Several Indian states have requested an additional 10,000+ electric buses under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. This comes on top of the 14,028 units already planned under the initiative. The requests are much higher than what was originally estimated by these states and may need a separate government scheme to address them.
Increased demand
Formal requests expected from several states
A senior official told ET on condition of anonymity that many state governments have exceeded their initial estimates and are now seeking more electric buses.
The West Bengal, Delhi, Telangana, and Karnataka governments as well as state transport undertakings are likely to make formal requests for these additional vehicles.
Notably, states like Uttar Pradesh and Himachal Pradesh have also requested e-buses for inter-city routes.
Scheme details
What is the PM e-DRIVE scheme?
The PM E-DRIVE scheme involves the central government inviting bids for e-buses, which helps in determining their price.
After this, states place their demand for these vehicles with the Union heavy industries ministry.
Electric buses get the biggest chunk of subsidy allocation under this scheme, with ₹4,391 crore set aside for deployment across major cities.
Procurement status
Procurement process for 13,800 e-buses has been completed
The procurement process for 13,800 e-buses under the PM E-DRIVE scheme has been completed. This includes 10,900 buses from the first tender and 2,900 from the second.
However, there are already additional demands such as 500 e-buses for Surat, 600 for Hyderabad, and even more across Andhra Pradesh (2,000), Rajasthan (900), Meghalaya (20), and Jammu & Kashmir (200).
Scheme extension
Scheme extended to March 2028
Initially approved with a ₹10,900 crore outlay for two years, the PM E-DRIVE scheme has now been extended till March 31, 2028.
This is applicable to all segments except large electric three-wheelers.
Official estimates indicate that over 2.9 million electric vehicles have been incentivized under this scheme so far, including 2.7 million electric two-wheelers and 10,088 electric rickshaws.