All 10,900 electric buses sanctioned under the first phase of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-Drive) will be deployed by the end of 2027, Union Minister for Heavy Industries HD Kumaraswamy told FE. The government, he emphasised, is committed not only to finalising tenders but also to ensuring timely deployment.
“Our aim is to successfully implement the National Electric Bus Programme (NEBP) and stay on track to meet India’s net-zero target,” the minister added.
The NEBP aims to deploy 50,000 e-buses by 2027, aligning with India’s broader goal of achieving net-zero emissions by 2070.
Under the ₹10,900-crore scheme, a total of 14,028 electric buses are slated for deployment. With the first tender nearing conclusion, Kumaraswamy noted that preparations are already underway for the second phase. The tender for the first phase will be floated within the next fortnight by Convergence Energy Services Limited (CESL), the nodal agency for demand aggregation and procurement.
This definitive timeline is a direct response to mounting concerns over the sluggish rollout of electric buses under the second phase of the Faster Adoption and Manufacturing of and Electric Vehicles (FAME) scheme. Though the scheme formally concluded in March 2024, only 5,135 of the 6,862 sanctioned electric buses had been delivered as of February 2025, according to data presented by the ministry of heavy industries in the Lok Sabha.
The delays in deployment under FAME-II were attributed to both original equipment manufacturers (OEMs) and state transport undertakings (STUs). Several OEMs overcommitted by bidding beyond their manufacturing capacities, leading to supply bottlenecks.
On the other hand, many states failed to fulfil critical ‘Condition Precedent’ requirements, such as providing operational depots, administrative infrastructure, and electrical connectivity, causing further delays.
To mitigate these challenges, Kumaraswamy said he has convened multiple meetings with state governments. “We’ve had constructive discussions, and states have assured us that delays from the STU side will not recur,” he said.
He further confirmed that his ministry is working closely with stakeholders to ensure all preconditions are met, enabling OEMs to initiate timely rollouts.
Major cities like Chennai, Kolkata, Pune, and Mumbai were notably absent from Phase I. However, Kumaraswamy said discussions are ongoing to secure their participation in the second phase.
“I’ve spoken with leaders from these states and encouraged their involvement. We expect them to come on board in Phase II. I want every eligible state to benefit from this initiative,” he added.
Phase I of PM E-Drive has seen confirmed demand for 10,900 buses. Based on these proposals, the ministry has assured allocations of approximately 4,500 buses to Bengaluru, 2,800 to Delhi, 2,000 to Hyderabad, 1,000 to Ahmedabad, and 600 to Surat.
Between January 2020 and April 2025, total electric bus deployments stood at about 9,630 units. Electric buses accounted for just 4% of the 84,132 buses sold in FY25.
