The Convergence Energy Services Ltd (CESL) has concluded a tender for 10,900 electric buses (e-buses) in five major metropolitan regions in India, including Bengaluru, Hyderabad, Ahmedabad, Surat, and Delhi. The tender, which is part of the PM E-Drive scheme, aims to promote the adoption of electric buses for public transport in the country. A total of 16 bids were received from various bus manufacturers and operators, including Tata Motors, JBM Auto, PMI Electro Mobility Solutions, Pinnacle Mobility Solutions, and Volvo Eicher Commercial Vehicles, as well as Greencell Mobility Pvt. Ltd and Evey Trans Pvt. Ltd.
The tender has a gross cost contract (GCC) model, where manufacturers retain ownership of the e-buses and states pay for their operation on a per-kilometer basis. The central government has allocated ₹4,391 crore to reduce the cost of procuring these buses, which is about 40% of the total outlay. The government plans to cover 20-35% of the cost of each e-bus, depending on its size, with the current cost of an e-bus ranging from ₹1-1.25 crore.
The tender is expected to provide a boost to the electric mobility sector in India, with the government aiming to put over 14,000 e-buses on the roads under the PM E-Drive scheme. The adoption of e-buses is expected to reduce vehicular emissions and cut the country’s fuel import dependence, which are key goals of the scheme. According to a report by CareEdge Ratings, e-bus sales are expected to cross 17,000 units by FY27, up from the current 3,500 units per year.
The tender process had been deferred thrice due to stringent conditions on bidders and inadequate infrastructure in states. However, the CESL has now opened the technical bids, and the price discovery process is expected to be completed in four weeks. The agency has stated that the encouraging participation in the tender demonstrates the growing confidence of the industry in India’s electric mobility transition. The allocation of e-buses under the tender includes 4,500 for Bengaluru, 2,000 for Hyderabad, 600 for Surat, 1,000 for Ahmedabad, and 2,800 for Delhi.