In a significant boost to India's electric mobility transition, sixteen companies have submitted bids for the Union government's massive tender for 10,900 electric buses. The tender, managed by Convergence Energy Services Ltd (CESL), represents the largest ever procurement of electric buses in the country under the PM E-Drive scheme.
Major Players in the Bidding Race
The bidding pool includes prominent bus manufacturers such as Tata Motors, JBM Auto, PMI Electro Mobility Solutions, Pinnacle Mobility Solutions and Volvo Eicher Commercial Vehicles. Additionally, operators including Greencell Mobility Pvt. Ltd and Evey Trans Pvt. Ltd have joined the competition, according to officials familiar with the development.
CESL confirmed the receipt of 16 bids in its official statement, though it refrained from naming specific bidders. The agency, which operates as a wholly owned subsidiary of Energy Efficiency Services Ltd (EESL), described this as a landmark moment for electric public transportation in India.
Tender Structure and City-Wise Allocation
The tender follows a gross cost contract (GCC) model where manufacturers retain ownership of the electric buses while state transport agencies pay for operations on a per-kilometer basis. This approach transfers the operational risk to manufacturers while ensuring states receive reliable service.
The city-wise allocation reveals Bengaluru will receive the largest share with 4,500 e-buses, followed by Delhi with 2,800 units. Hyderabad is slated for 2,000 buses, while Ahmedabad and Surat will get 1,000 and 600 electric buses respectively.
The tender process, which originally opened in late June with an August closure deadline, faced multiple extensions. These delays occurred as state transport agencies requested revisions in lot sizes, bus types and depot-related specifications.
Financial Support and Implementation Timeline
The central government has committed substantial financial backing for this initiative, allocating ₹4,391 crore to subsidize bus procurement costs. This represents approximately 40% of the total project outlay, significantly reducing the financial burden on state transport agencies.
Under the PM E-Drive scheme, incentives are directed to state transport agencies that procure buses from manufacturers based on a per-kilometer operation fee. The current tender aims to discover the market rate for this operational cost.
Price discovery will commence following the bid evaluation process, which officials estimate may require up to four weeks to complete. The government plans to cover 20-35% of each e-bus's cost, depending on its size, with current e-bus prices ranging between ₹1-1.25 crore per unit.
Broader Impact and Industry Outlook
This tender marks the initial phase of a broader initiative to deploy more than 14,000 electric buses across Indian cities. The transition to electric buses serves dual national objectives: reducing vehicular emissions and decreasing India's dependence on fuel imports.
Industry projections indicate strong growth ahead for electric buses in India. A CareEdge Ratings report from March estimates that e-bus sales will exceed 17,000 units by FY27, a substantial increase from the current annual sales of approximately 3,500 units.
The significant industry participation in this tender demonstrates growing confidence in India's electric mobility transition and sets the stage for accelerated adoption of clean public transportation across the country's major metropolitan regions.
