**Executive Summary**
This document is a response from the Minister of State in the Ministry of Housing and Urban Affairs to unstarred questions regarding the progress and implementation of the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme, to be answered on December 11, 2025. The scheme was notified on October 28, 2024. Thirteen States/UTs have submitted the Direct Debit Mandate (DDM) to the Reserve Bank of India as of December 2, 2025.
**Key Points / Main Content**
* **Scheme Overview and Notification:**
* The PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme was notified on October 28, 2024.
* The PSM Scheme guidelines and SOPs are published.
* **Scheme Implementation Status:**
* 13 States/UTs have submitted the Direct Debit Mandate (DDM) to the Reserve Bank of India as of December 2, 2025, a requirement for eligibility under the Scheme.
* Tenders for 5,918 buses were concluded under the PM-eBus Sewa Scheme, and Concession Agreements were signed for 1,175 buses.
* CESL has floated tender for 10,900 buses under PM E-DRIVE.
* **Payment Security and Defaults:**
* No payment defaults have been reported, and no claims have been processed under the PSM Scheme.
* **Performance Monitoring:**
* State Transport Undertakings (STUs)/Authorities sign Concession Agreements with bus operators directly.
* STUs need to monitor the operational performance of electric buses.
* Payments to operators under the Gross Cost Contract (GCC) are linked to kilometers operated, fleet availability, and service performance.
**Impact Analysis**
**Ministry of Housing and Urban Affairs**
* **Impact** The ministry is responsible for overseeing the implementation and progress of the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme.
* **Action Required** Respond to parliamentary questions regarding the scheme's status and progress.
**State Transport Undertakings (STUs)/Authorities**
* **Impact:** Directly involved in the implementation of the scheme and signing Concession Agreements with bus operators.
* **Action Required:** STUs need to monitor the operational performance of electric buses and ensure payments to operators under the Gross Cost Contract (GCC) are linked to performance parameters.
**Bus Operators**
* **Impact:** Receive payments based on their performance as measured by parameters such as kilometers operated, fleet availability, and service performance.
* **Action Required:** Operate and maintain electric buses according to the terms of the Concession Agreements.
**States/Union Territories (UTs)**
* **Impact:** Must participate in the Direct Debit Mandate (DDM) with the Reserve Bank of India to be eligible under the Scheme
* **Action Required:** If they haven't already, submit the Direct Debit Mandate (DDM) to the Reserve Bank of India to be eligible under the Scheme.
Key Entities Referenced
PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme: A scheme focused on the deployment and operationalisation of electric buses, including a payment security mechanism.
Ministry of Housing and Urban Affairs: The primary ministry responsible for the PM e-Bus Sewa-Payment Security Mechanism Scheme.
Ministry of Heavy Industries (MHI): Informed that the PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme was notified.
States/UTs: 13 States/UTs have submitted the Direct Debit Mandate (DDM) to Reserve Bank of India, which is an essential requirement to be eligible under the Scheme.
GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 2042
TO BE ANSWERED ON DECEMBER 11, 2025
PROGRESS AND IMPLEMENTATION OF PM E-BUS SEWA-PAYMENT
SECURITY MECHANISM SCHEME
NO. 2042. SHRI MANOJ TIWARI:
SHRI BALABHADRA MAJHI:
Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to
state:
(a) the current status of implementation of the PM-eBus 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 till
date and the quantum of funds released from PSM;
(c) whether any instances of Public Transport Authorities (PTAs)
payment defaults have been recorded, if so, the corrective measures
undertaken thereof;
(d) whether the Government has undertaken any assessment of the
operational performance, utilisation rates or service outcomes of
electric buses supported under the scheme; and
(e) if so, the key findings thereof?
ANSWER
THE MINISTER OF STATE IN THE
MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a) Ministry of Heavy Industries (MHI) informed that the PM e-Bus Sewa-
Payment Security Mechanism (PSM) Scheme was notified on 28th Oct,
2024. The PSM Scheme guidelines and SOPs are published. 13 States/UTs
have submitted the Direct Debit Mandate (DDM) to Reserve Bank of India
as on 2nd Dec, 2025, which is an essential requirement to be eligible under
the Scheme.
Further, tender for 5,918 number of buses was concluded under the
PM-eBus Sewa Scheme and Concession Agreements were signed for 1,175
numbers of buses by the respective Authority/Municipality. Additionally,
CESL has floated tender for 10,900 buses under PM E-DRIVE.
…2/--2-
(b) & (c) MHI informed that with respect to the above position, so far, no
payment default has been reported and no claim has been processed under
the PSM Scheme.
(d) & (e) As informed by MHI, State Transport Undertakings
(STUs)/Authorities sign the Concession Agreement with the bus operator
directly. STUs needs to monitor the operational performance of electric
buses, since payments to operators under the Gross Cost Contract (GCC)
are directly linked to parameters such as kilometres operated, fleet
availability and service performance.
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