November 5, 2025

The Indian government wants its huge electric bus plan to be a grand success! Earlier this year, the Centre announced a tender for 10,900 electric buses to roll out in Bengaluru, Delhi, Hyderabad, Surat, and Ahmedabad. This is part of the huge ₹10,900 crore PM E drive scheme that also includes electric two-wheelers, three-wheelers, ambulances, trucks, and charging stations. To get more players on board, the government has now changed the rules. Not only manufacturers but bus operators, infrastructure developers, and even municipal bodies can join the tender. However, these groups must partner with manufacturers (OEMs) to apply. This clever move aims to ease finance access for manufacturers and grow a stronger electric bus network. A senior government official explained that some companies, like the Tata Group, hesitated earlier because the project was "too high a load on their balance sheet." The new changes might fix that problem. The tender is managed by Convergence Energy Services Limited (CESL) and covers everything from buying the buses to running and maintaining them, plus building the necessary electrical and civil infrastructure. The business model used is called Gross Cost Contracting (GCC), where city transport bodies pay a fixed amount per kilometer to operators. The deadline for bids, initially set earlier, has already been extended twice, with the latest cutoff date on November 6. Big names like the Adani Group, the National Investment and Infrastructure Fund (which the government partly owns), and a Canadian pension fund are expected to compete. Already, 6-7 manufacturers showed interest in early meetings. This exciting shake-up could bring more electricity to India’s roads and speed up the green transport revolution in five key cities. Will more companies jump in before the November 6 deadline? The race is on!

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Tags: Electric buses, Pm e-drive, Cesl, Adani group, Public transport, Electric Vehicle Tender,