Lok Sabha Question No. 2890 (UNSTARRED), answered on 2026-03-10
Subject: PM-eBus Sewa–PSM Scheme
Ministry: HEAVY INDUSTRIES
Asked by: Shri Jugal Kishore

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 2890 ANSWERED ON 10.03.2026

## PM-eBUS SEWA-PSM SCHEME

## 2890. SHRI JUGAL KISHORE:

## Will the Minister of HEAVY INDUSTRIES be pleased to state:

- (a) the details regarding the implementation progress of the PM-eBus Sewa-PSM Scheme, including the allocation of e-buses under the Gross Cost Contract (GCC) model, State-wise;
- (b) the details of payment security framework established under the scheme, including the role of Convergence Energy Services Limited (CESL) as the implementing agency;
- (c) the details of timeline fixed for deployment and operationalization of the sanctioned buses and the duration of operational support provided under the Scheme; and
- (d) whether the Ministry has reviewed the operationalization of the Direct Debit Mandate mechanism with the Reserve Bank of India for recovery of dues in case of default by PTAs and if so, the details thereof?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a) & (b): PM  e-Bus Sewa-PSM  Scheme  was  notified on 28.10.2024. The details of implementation progress is as below:-

- i. Scheme guidelines and Standard Operating Procedure (SOP) were published.
- ii. 19 States/UTs have submitted the Direct Debit Mandate (DDM) to Reserve Bank of India as on 10.12.2025.
- iii. As on 28.02.2026, Tender for 6,228 number of buses were concluded under PM-eBus Sewa Scheme.
- iv. Letter of Award for 4720 buses have been issued by Public Transport Authorities (PTA).
- v. Tender for 10,900 buses under PM E-DRIVE scheme are concluded and tender for 2,900 buses is under progress.
- vi. Rs. 500 crore has been disbursed to Convergence Energy Services Limited (CESL) to set up the PSM Fund in FY 2025-26.

The State wise details of the allocated e-buses are as below:-

|       |                | No of buses     | No of buses          | No of buses   |
|-------|----------------|-----------------|----------------------|---------------|
| Sl No | State/UT       | PME-DRIVE (MHI) | PM-eBus Sewa (MoHUA) | Total         |
| 1     | Gujarat        | 1,800           | 750                  | 2,550         |
| 2     | Karnataka      | 4,500           | 750                  | 5,250         |
| 3     | Maharashtra    | 2,500           | 1,609                | 4,109         |
| 4     | Telangana      | 2,200           | 151                  | 2,351         |
| 5     | Delhi          | 2,800           | -                    | 2,800         |
| 6     | Andhra Pradesh | -               | 1,050                | 1,050         |

| 7   | Madhya Pradesh                           | -      | 972    | 972    |
|-----|------------------------------------------|--------|--------|--------|
| 8   | Meghalaya                                | -      | 55     | 55     |
| 9   | Odisha                                   | -      | 400    | 400    |
| 10  | Punjab                                   | -      | 447    | 447    |
| 11  | Puducherry                               | -      | 75     | 75     |
| 12  | Rajasthan                                | -      | 1,150  | 1,150  |
| 13  | J&K                                      | -      | 200    | 200    |
| 14  | Assam                                    | -      | 100    | 100    |
| 15  | Uttarakhand                              | -      | 137    | 137    |
| 16  | Manipur                                  | -      | 50     | 50     |
| 17  | Arunachal Pradesh                        | -      | 50     | 50     |
| 18  | Goa                                      | -      | 50     | 50     |
| 19  | Haryana                                  | -      | 450    | 450    |
| 20  | Bihar                                    | -      | 400    | 400    |
| 21  | Chhattisgarh                             | -      | 240    | 240    |
| 22  | Kerala                                   | -      | 293    | 293    |
| 23  | Himachal Pradesh                         | -      | 50     | 50     |
| 24  | Dadra and Nagar Haveli and Daman and Diu | -      | 50     | 50     |
| 25  | Chandigarh                               | -      | 428    | 428    |
| 26  | Ladakh                                   | -      | 48     | 48     |
| 27  | Andaman &Nicobar Islands                 | -      | 45     | 45     |
|     | Total                                    | 13,800 | 10,000 | 23,800 |

Convergence  Energy  Services  Ltd.  (CESL)  acts  as  the  Central  Implementing  Agency  for Scheme, managing the dedicated Payment Security Fund to ensure timely payments to electric bus operators.  CESL  will  review  and  verifies  payment  claims  in  accordance  with  the  Concession Agreements (CA) and scheme guidelines. CESL is also responsible for developing the SOPs for fund disbursement and for aggregating e-bus operations at the national level under the Gross Cost Contract (GCC) model.

(c): PSM Scheme provides payment security coverage for a period of up to 12 years for each bus deployed under the Scheme. Usually, timeline for deployment of buses is considered to be two (2) years from signing of CA between PTA and OEM.

(d): As  of  02.03.2026,  19  State/UTs  have  submitted  the  Direct  Debit  Mandate  (DDM)  to  the Reserve Bank of India (RBI) who have either participated under PM E-DRIVE Scheme of Ministry of Heavy Industries or PM-eBus Sewa Scheme of Ministry of Housing and Urban Affairs (MoHUA).

*****