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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.-2-
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 PM-
eBus Sewa-PSM Scheme.
*****Annexure
S.No State Cities Sanctioned Buses
Surat 600
Gujarat
1 Ahemdabad 1,200
2 Karnataka Bengaluru 4,500
Mumbai 1,500
3 Maharashtra Pune 1,000
4 Telangana Hyderabad 2,200
5 Delhi Delhi 2,800
A Total (PM 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
Gujarat
16 Jamnagar 50
17 Junagadh 50
18 Rajkot 100
19 Vadodara 250
20 Bhopal 195
21 Indore 270
22 Jabalpur 200
23 Sagar 32
Madhya Pradesh
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 Jalgaon 50
Maharashtra
37 Kalyan Dombivli 100
38 Kolhapur 100
39 Latur 50
40 Mira Bhainder 100
41 Nagpur 150
42 Nashik 100
43 Sangli 50
44 Solapur 100
45 Thane 10046 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 Dehradun 100
Uttrakhand
67 Haridwar 37
68 Assam Guwahati 100
69 Chandigarh Chandigarh 428
70 Gurugram 100
71 Faridabad 100
72 Hisar 50
73 Karnal 50
74 Panipat 50
75 Rohtak 50
76 Haryana Yamuna Nagar 50
77 Bhagalpur 50
78 Darbhanga 50
79 Gaya 50
Bihar
80 Muzzafarpur 50
81 Patna 150
82 Purnea 50
83 Arunachal Pradesh Itanagar 50
84 Goa Panaji 50
85 Shimla 25
Himachal Pradesh
86 Dharmsala 25
87 Durg 50
88 Raipur 100
Chattisgarh
89 korba 40
90 Bilaspur 50
91 Belgagavi 100
92 Bellary 50
93 Davanagere 50
94 Dharwad 100
95 kalaburagi 100
karnataka
96 Mangaluru 100
97 Mysuru 100
98 Shimoga 50
99 Tumakuru 50
100 Vijayapura 50
101 Amritsar 100
Punjab
102 Ludhiana 100103 Patiala 50
104 Jalandhar 97
105 Sahibzada Ajit Singh Nagar 100
106 Kerela Kerala 293
107 Nizamabad 51
Telangana
108 Warangal 100
109 Manipur Imphal 50
110 Andaman & Nicobar Andaman & Nicobar 45
111 Srinagar 100
Jammu & Kashmir
112 Jammu 100
113 Ladakh Ladakh 48
Dadra & nagar Dadra & nagar haveli,Daman &
114 50
haveli,Daman & DIU DIU
B Total (PM-eBus Sewa) 10,000
C Total Scheme Buses (A+B) 23,800