Lok Sabha Question No. 3972 (UNSTARRED), answered on 2026-03-17
Subject: PM-eBus Sewa– Payment Security Mechanism (PSM) Scheme
Ministry: HEAVY INDUSTRIES
Asked by: Shri Arun Govil, Shri Anurag Sharma

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 3972

ANSWERED ON 17.03.2026

## PM-EBUS SEWA- PAYMENT SECURITY MECHANISM (PSM) SCHEME

## 3972.  SHRI ANURAG SHARMA: SHRI ARUN GOVIL:

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

- (a)  the  details  regarding  progress  of  implementation  of  the  PM-eBus  Sewa-  Payment  Security Mechanism (PSM) Scheme, including the State-wise allocation  of  e-buses  under  the  Gross  Cost Contract (GCC) model, specifically for cities like Jhansi and Lalitpur;
- (b) the details regarding payment security framework established under the Scheme, including the role of Convergence Energy Services Limited (CESL) as the implementing agency;
- (c) the details regarding timelines fixed for deployment and operationalisation of the sanctioned buses and the duration of operational support provided under the Scheme;
- (d)  whether  the  Government  has  reviewed  the  operationalisation  of  the  Direct  Debit  Mandate mechanism with the Reserve Bank of India for recovery of dues in case of default by PTAs;
- (e) if so, the details thereof; and
- (f) whether any proposal has been approved for the allocation of e-buses in the Meerut Parliamentary Constituency under the PM-eBus Sewa-PSM Scheme and if so, the number of buses sanctioned and the timeline for their deployment?

## 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 (SOPs) have been published.
- ii. 19 States/UTs have submitted the Direct Debit Mandate (DDM) to Reserve Bank of India as on 12.03.2026.
- iii. As on 28.02.2026, Tender for 6,228 number of buses were concluded under PM-eBus Sewa Scheme of MoHUA.  Letter of Award for 4720 buses have been issued by Public Transport Authorities (PTA).
- iv. Tender for 10,900 buses under PM E-DRIVE scheme are concluded and tender for 2,900 buses is under progress.
- v. Rs. 500 crore has been disbursed to CESL in the first tranche to set up the PSM Fund in FY 2025-26.

In the city of Jhansi and Lalitpur, no demand for allocation of e-buses under PM-eBus Sewa Scheme has been received from the State Authority.

The State wise details of the allocated e-buses are provided in Annexure.

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 reviews 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.

Convergence  Energy  Services  Ltd.  (CESL)  reviews  and  verifies  payment  claims  in accordance with the Concession Agreements and scheme guidelines.  In case of payment default by Public Transport Authorities (PTAs), CESL may disburse the approved amount from the Payment Security Fund to the operator's escrow account and subsequently undertake recoupment from the concerned State/authority within the prescribed timeline, along with the applicable surcharge.  If the PTA fails to repay the disbursed amount with Late Payment Surcharge (LPS) within 90 days, MHI will  request  RBI  to  invoke  the  Direct  Debit  Mandate  (DDM).  RBI  shall  debit  the  State Government/UT account and credit the Scheme Fund, including the applicable LPS.

(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 Concession Agreements (CA) between PTA and OEM.

(d) & (e): As of 12.03.2026, 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 MHI or PM-eBus Sewa Scheme of Ministry of Housing and Urban Affairs (MoHUA).  Since buses are under deployment stage, hence no payment default is reported by PTA as on date and no claim is processed under PSM Scheme.

(f): No demand for allocation of buses has been received from Meerut/State Authority under PMeBus Sewa-PSM Scheme.

*****

## Annexure

| S.No   | State          | Cities                   | Sanctioned Buses   |
|--------|----------------|--------------------------|--------------------|
| 1      | Gujarat        | Surat Ahemdabad          | 600                |
| 2      | Karnataka      | Bengaluru                | 1,200 4,500        |
|        |                | Mumbai                   | 1,500              |
| 3      | Maharashtra    | Pune                     | 1,000              |
| 4      | Telangana      | Hyderabad                | 2,200              |
| 5      | Delhi          | Delhi                    | 2,800              |
| A      | Total E-DRIVE) | Total E-DRIVE)           | 13,800             |
| S.No.  | State          | Cities                   | Sanctioned Buses   |
| 1      |                | Amaravati                | 50                 |
| 2      |                | Anantapur                | 50                 |
| 3      |                | Guntur                   | 100                |
| 4      |                | Kadapa                   | 50                 |
| 5      |                | Kakinada                 | 50                 |
| 6      | Andhra Pradesh | Kurnool                  | 50                 |
| 7      |                | Nellore                  | 100                |
| 8      |                | Rajahmundry              | 50                 |
| 9      |                | Tirupati                 | 350                |
| 10     |                | Vijayawada               | 100                |
| 11     |                | Visakhapatnam            | 100                |
| 12     |                | Bhavnagar                | 100                |
| 13     |                | Gandhidham               | 50                 |
| 14     |                | Navsari                  | 50                 |
| 15     |                | Gandhinagar              | 100                |
| 16     | Gujarat        | Jamnagar                 | 50                 |
| 17     |                | Junagadh                 | 50                 |
| 18     |                | Rajkot                   | 100                |
| 19     |                | Vadodara                 | 250                |
| 20 21  |                | Bhopal Indore            | 195 270            |
|        |                | Jabalpur                 |                    |
| 22     |                |                          | 200                |
| 23     | Madhya Pradesh | Sagar                    | 32                 |
| 24     |                | Gwalior                  | 100                |
| 25     |                | satna                    | 20                 |
| 26     |                | Dewas                    | 55                 |
| 27     |                | Ujjain                   | 100                |
| 28     |                | Ahilyanagar              | 40                 |
| 29     |                | Akola                    | 50                 |
| 30     |                | Amravati                 | 50                 |
| 31     |                | Chatrapati Sambhajinagar | 100                |
| 32     |                | Bhiwandi                 | 100                |
| 33     |                | Chandrapur               | 50                 |
| 34     |                | Dhule                    | 28                 |
| 35     |                | Ichalkaranji             | 25                 |
| 36     | Maharashtra    | Jalgaon                  | 50                 |
| 37     |                | Kalyan Dombivli          | 100                |
| 38     |                | Kolhapur                 | 100                |
| 39     |                | Latur                    | 50                 |
| 40     |                | Mira Bhainder            | 100 150            |
| 41     |                | Nagpur                   |                    |
| 42     |                | Nashik                   | 100                |
| 43 44  |                | Sangli Solapur           | 50 100             |
| 45     |                |                          | 100                |
|        |                | Thane                    |                    |

| 46    |                   | Ulhasnagar       | 100   |
|-------|-------------------|------------------|-------|
| 47    |                   | Vasai Virar City | 100   |
| 48    |                   | Malegaon         | 26    |
| 49    |                   | Prabhani         | 40    |
| 50    | Meghalaya         | Shillong         | 55    |
| 51    |                   | Sambalpur        | 50    |
| 52    |                   | Berhampur        | 50    |
| 53    | Odisha            | Bhubaneswar      | 100   |
| 54    |                   | Rourkela         | 100   |
| 55    |                   | Cuttack          | 100   |
| 56    | Puducherry        | Puducherry       | 75    |
| 57    |                   | Ajmer            | 100   |
| 58    |                   | Alwar            | 100   |
| 59    |                   | Bhilwara         | 50    |
| 60    |                   | Bikaner          | 125   |
| 61    | Rajasthan         | Jaipur           | 450   |
| 62    |                   | Jodhpur          | 125   |
| 63    |                   | Kota             | 100   |
| 64    |                   | Udaipur          | 50    |
| 65    |                   | Sikhar           | 50    |
| 66    | Uttrakhand        | Dehradun         | 100   |
| 67    |                   | Haridwar         | 37    |
| 68    | Assam             | Guwahati         | 100   |
| 69    | Chandigarh        | Chandigarh       | 428   |
| 70    |                   | Gurugram         | 100   |
| 71    |                   | Faridabad        | 100   |
| 72 73 |                   | Hisar Karnal     | 50    |
| 74    |                   | Panipat          | 50    |
| 75    |                   | Rohtak           | 50 50 |
| 76    | Haryana           | Yamuna Nagar     | 50    |
| 77    |                   | Bhagalpur        | 50    |
| 78    |                   | Darbhanga        | 50    |
| 79    |                   | Gaya             | 50    |
| 80    | Bihar             | Muzzafarpur      | 50    |
| 81    |                   | Patna            | 150   |
| 82    |                   | Purnea           | 50    |
| 83    | Arunachal Pradesh | Itanagar         | 50    |
| 84    | Goa               | Panaji           | 50    |
| 85    |                   | Shimla           | 25    |
| 86    | Himachal Pradesh  | Dharmsala        | 25    |
| 87    |                   | Durg             | 50    |
| 88    |                   | Raipur           | 100   |
| 89    | Chattisgarh       | korba            | 40    |
| 90    |                   | Bilaspur         | 50    |
| 91    |                   | Belgagavi        | 100   |
| 92    |                   | Bellary          | 50    |
| 93    |                   | Davanagere       | 50    |
| 94    |                   | Dharwad          | 100   |
| 95    |                   | kalaburagi       | 100   |
| 96    | karnataka         | Mangaluru        | 100   |
| 97    |                   | Mysuru           | 100   |
| 98    |                   | Shimoga          | 50    |
| 99    |                   | Tumakuru         | 50    |
| 100   |                   | Vijayapura       | 50    |
| 101   |                   | Amritsar         | 100   |
| 102   | Punjab            | Ludhiana         | 100   |

| 103   |                                | Patiala                        | 50     |
|-------|--------------------------------|--------------------------------|--------|
| 104   |                                | Jalandhar                      | 97     |
| 105   |                                | Sahibzada Ajit Singh Nagar     | 100    |
| 106   | Kerela                         | Kerala                         | 293    |
| 107   | Telangana                      | Nizamabad                      | 51     |
| 108   |                                | Warangal                       | 100    |
| 109   | Manipur                        | Imphal                         | 50     |
| 110   | Andaman &Nicobar               | Andaman &Nicobar               | 45     |
| 111   | Jammu &Kashmir                 | Srinagar                       | 100    |
| 112   |                                | Jammu                          | 100    |
| 113   | Ladakh                         | Ladakh                         | 48     |
| 114   | Dadra &nagar haveli,Daman &DIU | Dadra &nagar haveli,Daman& DIU | 50     |
| B     | Total (PM-eBus Sewa)           | Total (PM-eBus Sewa)           | 10,000 |
| C     | Total Scheme Buses (A+B)       | Total Scheme Buses (A+B)       | 23,800 |