**Executive Summary**
This document addresses questions regarding the implementation of the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme. The scheme, with a total outlay of Rs. 3,435.33 crore, was notified on October 28, 2024, aiming to support the deployment of over 38,000 electric buses. As of December 15, 2025, 13 States/UTs have submitted the Direct Debit Mandate (DDM) to the Reserve Bank of India (RBI).
**Key Points / Main Content**
* **Scheme Overview and Status:**
* The PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme was notified on October 28, 2024.
* The scheme aims to support the deployment of over 38,000 electric buses.
* As of December 15, 2025, 13 States/UTs have submitted the Direct Debit Mandate (DDM) to the Reserve Bank of India (RBI).
* **Tendering and Awards:**
* CESL invited and concluded tenders for 6,198 electric buses under the Ministry of Housing and Urban Affairs’ PM e-Bus Sewa scheme.
* Public Transport Authorities (PTAs) have issued Letters of Award (LoAs) for 4,472 e-buses.
* Technical bids have been opened for tenders invited by CESL for the operation and maintenance of 10,900 e-buses under the PM E-DRIVE Scheme.
* **Financial Status:**
* No payment defaults by Public Transport Authorities (PTAs) have been reported.
* No payment security support claims have been received under the scheme.
* **Performance Assessment:**
* The Ministry of Heavy Industries has not yet conducted an assessment of the operational performance, utilization rates, or service outcomes of electric buses supported under the scheme.
**Impact Analysis**
**States/Union Territories**
* **Impact:** Eligibility for the scheme.
* **Action Required:** Submission of the Direct Debit Mandate (DDM) to the Reserve Bank of India (RBI).
**Public Transport Authorities (PTAs)**
* **Impact:** Issuance of Letters of Award (LoAs).
* **Action Required:** Issue Letters of Award (LoAs) for successful tenders.
**CESL**
* **Impact:** Involvement in tendering and contract awarding.
* **Action Required:** Manage tenders for the operation and maintenance of e-buses and review submissions from potential operators.
Key Entities Referenced
PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: A scheme to support the deployment of electric buses, including a payment security mechanism
Ministry of Heavy Industries: The ministry responsible for answering questions about the PM e-Bus Sewa (PSM) Scheme.
PM E-DRIVE Scheme: A scheme mentioned in relation to tenders for operation and maintenance of e-buses.
Ministry of Housing and Urban Affairs: Mentioned as part of the PM e-Bus Sewa scheme.
Reserve Bank of India (RBI): An essential requirement to be eligible under the scheme.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
RAJYA SABHA
UNSTARRED QUESTION NO. 2310
ANSWERED ON 19.12.2025
IMPLEMENTATION OF PM E-BUS SEWA–(PSM) SCHEME,
2310. DR. KAVITA PATIDAR:
SHRI KANAD PURKAYASTHA:
DR. DINESH SHARMA:
Will the Minister of Heavy Industries be pleased to state:
(a) the current status of implementation of the PM e-Bus Sewa–Payment Security Mechanism
(PSM) Scheme, including the number of electric buses deployed or operationalised so far under
the Scheme;
(b) the total number of payment security support claims processed to date, the quantum of funds
released from PSM;
(c) whether any instances of Public Transport Authorities (PTAs) payment defaults have been
recorded;
(d) if so, the corrective measures undertaken thereof;
(e) whether the Ministry has undertaken any assessment of the operational performance, utilisation
rates or service outcomes of electric buses supported under the Scheme; and
(f) if so, the key findings?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): The PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme, with total outlay of
Rs.3,435.33 crore was notified on 28thOctober, 2024. This scheme aims to support deployment of
more than 38,000 electric buses. As on 15thDecember, 2025, 13 States/UTs have submitted the
Direct Debit Mandate (DDM) to the Reserve Bank of India (RBI), which is an essential
requirement to be eligible under the scheme.
Further, CESL invited tenders for 6,198 electric buses which were concluded under the
PM e-Bus Sewa scheme of the Ministry of Housing and Urban Affairs. As on date, Letter of
Award (LoAs) for 4,472 e-buses have been issued by the Public Transport Authorities (PTAs).
Further, technical bids for tenders invited by CESL from e-bus operators for the operation
and maintenance of 10,900 e-buses under the PM E-DRIVE Scheme have been opened.
(b) & (c): No defaults have been reported and No Claims have been received under the scheme.
(d): Question does not arise in view of reply to Part (b) & (c) above.
(e) & (f): No such assessment of the operational performance, utilisation rates or service
outcomes of electric buses supported under the Scheme has been done by the Ministry of Heavy
Industries.
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