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GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO. 3430
ANSWERED ON 23/03/2026
PM-eBUS SEWA-PAYMENT SECURITY MECHANISM (PSM) SCHEME
3430. SHRI ASHOKRAO SHANKARRAO CHAVAN:
SHRI MASTHAN RAO YADAV BEEDHA:
SHRI SADANAND MHALU SHET TANAVADE:
Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:
(a) the implementation progress of the PM-eBus Sewa–PSM Scheme, including the State-
wise allocation of e-buses under the Gross Cost Contract (GCC) model;
(b) the 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 Government has reviewed the operationalisation of the Direct Debit Mandate
mechanism with the Reserve Bank of India (RBI) for recovery of dues in case of default by
PTAs; and
(e) if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a), (b),(d) & (e): Ministry of Heavy Industries which is the nodal Ministry for PM-eBus Sewa–PSM
Scheme, have informed that the PM e-Bus Sewa–PSM Scheme was notified on 28.10.2024. The
Scheme Guidelines and Standard Operating Procedure (SOPs) for Payment Security Mechanism have
been published.
M/s Convergence Energy Services Ltd. (CESL) acts as the Central Implementing Agency under
PM-eBus Sewa–PSM Scheme and manages the dedicated Payment Security Fund to ensure timely
payments to electric bus operators. They have been disbursed a sum of Rs.500 crore in the First
Tranche to set up the PSM Fund in Financial Year 2025-26. They review & verify payment claims in
accordance with the Concession Agreements (CA) and the scheme guidelines. They are also
responsible for developing the SOPs for fund disbursement under Payment Security Mechanism and
for aggregating e-bus operations at the national level under the Gross Cost Contract (GCC) model. In
case of payment default by Public Transport Authorities (PTAs) covered under the scheme, M/s CESL
shall disburse the approved amount from the Payment Security Fund to the escrow account of bus
operator and subsequently undertake recoupment from the concerned State/PTA within the prescribed
timeline, along with the applicable surcharge. If the PTA fails to repay the disbursed amount with LPS
(Late Payment Surcharge) within 90 days, Ministry of Heavy Industries will request Reserve Bank of
India (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.
As on 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 Ministry of Heavy
Industries (MHI) or PM-eBus Sewa Scheme of Ministry of Housing and Urban Affairs (MoHUA).
Since buses are under deployment stage, hence no payment default has been reported by PTAs as on
date and no claim processed under PM-eBus Sewa–PSM Scheme.
…2/--2-
As on 28.02.2026, Tender for 6,228 number of buses have been concluded under PM-eBus Sewa
Scheme and Letter of Award for 4,720 buses issued by Public Transport Authorities (PTA). The State-
wise details of the allocated e-buses are provided in Annexure-I.
(c): Under PM-eBus Sewa Scheme, MoHUA envisages 31st March 2027 as the estimated timeline
for full deployment of electric buses by the participating cities, which is subjected to completion of
work for creation of associated depot infrastructure.
*****ANNEXURE-I
State-wise details of the allocated e-buses
No. of buses
PM E- PM-eBus
Sl No State/UT
DRIVE Sewa Total
(MHI) (MoHUA)
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
Tender for 6,228 number of buses were concluded under PM-eBus Sewa Scheme of Ministry of
Housing & Urban Affairs. Tender for remaining 3,772 buses is due for publication shortly.