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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, 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 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
S. No. State/UT PM E-DRIVE PM-eBus Sewa
Total
(MHI) (MoHUA)
1 Gujarat 1,800 750 2,550
2 Karnataka 4,500 750 5,2503 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
Dadra and Nagar Haveli and
24 - 50 50
Daman and Diu
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).
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