Lok Sabha Question No. 2872 (UNSTARRED), answered on 2026-03-10
Subject: PM-eBus Sewa-Payment Security Mechanism (PSM) Scheme
Ministry: HEAVY INDUSTRIES
Asked by: Smt. Shobhanaben Mahendrasinh Baraiya

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO.2872

ANSWERED ON 10.03.2026

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

## 2872.  SMT. SHOBHANABEN MAHENDRASINH BARAIYA:

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

- (a)  the  details  of  implementation  progress  of  the  PM-eBus  Sewa-PSM  Scheme,  including  the allocation of e-buses (specifically to Gujarat State) under the Gross Cost Contract (GCC) model, Statewise;
- (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 timelines fixed for deployment and operationalisation of the sanctioned buses and the duration of operational support provided under the Scheme;
- (d) whether the Ministry 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; and
- (e) 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 Ltd. (CESL) to set up the PSM Fund in FY 2025-26.

In the state of Gujarat, 750 buses have been sanctioned under PM-eBus Scheme and Letter of Award (LoA) for 555 numbers of buses have been issued by PTA. The State  wise  details  of  the allocated e-buses are as below:-

|        |           | No of buses     | No of buses          | No of buses   |
|--------|-----------|-----------------|----------------------|---------------|
| S. 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) & (e): 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).

*******