In a landmark push toward sustainable public transportation, India has launched one of its largest electric bus procurement initiatives to date. Under the central government’s ambitious PM E-Drive scheme, a fresh tender has been floated for the deployment of 10,900 electric buses across major metropolitan cities. The tender, published on June 27, 2025, has been issued by Convergence Energy Services Limited (CESL) — the same agency that previously spearheaded the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) program.

The procurement follows the Gross Cost Contracting (GCC) model and encompasses the supply, operation, and maintenance of the fleet, along with the development of related civil and electrical infrastructure. This end-to-end approach is designed to ensure seamless deployment and long-term sustainability of electric bus operations in high-density urban areas.

The initiative is part of a broader national strategy crafted by the Ministry of Heavy Industries (MHI) to promote electric mobility in public transportation. Backed by a subsidy pool of nearly €437 million (₹43.91 billion), the scheme targets the deployment of 14,028 e-buses in total, to be distributed across nine Indian cities with populations exceeding four million.

City-Wise Allocation:

Bengaluru: 4,500 buses
(3,500 12m low-floor non-AC, 300 12m low-floor AC, 600 9m low-floor non-AC, 100 9m low-floor AC)

Delhi: 2,800 buses
(2,500 12m low-floor AC, 300 9m low-floor AC)

Hyderabad: 2,000 buses

Ahmedabad: 1,000 buses
(600 9m and 400 12m AC)

Surat: 600 buses

The tender mandates that bidders provide a unified solution, including the development and operation of charging infrastructure, maintenance depots, and fleet management services. CESL will supervise the contract allocation and execution, ensuring accountability and adherence to performance benchmarks.

As cities across India continue to grapple with rising air pollution and urban congestion, this mega tender marks a critical step toward achieving cleaner, quieter, and more efficient urban mobility — positioning India as a front-runner in the global electric transition.