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PM e-Drive scheme to expand e-bus use beyond urban areas

May 26, 2025

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Financial Express Hyderabad

THE GOVERNMENT IS considering key changes to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-Drive) scheme, which may soon permit electric buses—originally intended for intra-city use—to operate on intercity routes, as well as in schools, tourist spots, and hilly or coastal areas.

- NITIN KUMAR

This move comes in response to limited demand from the cities initially targeted by the programme.

Initially, 14,028 electric buses were planned for deployment in nine major cities—Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Surat, and Pune—through a centralised tender process managed by Convergence Energy Services (CESL), a subsidiary of Energy Efficiency Services.

However, only five cities submitted formal requests, covering around 10,900 buses. The remaining 3,128 buses are now being considered for repurposing under the revised plan.

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