**Summary:**
This document summarizes the Indian Ministry of Heavy Industries' response to Lok Sabha Unstarred Question No. 1425, concerning Telangana's proposal for electric bus fleet expansion under the PM eDrive Scheme. The Ministry confirms receipt of Telangana's proposal for deploying 2,800 electric buses. While Telangana has expressed interest in a Hybrid Gross Cost Contract (GCC) model where buses are provided by Original Equipment Manufacturers (OEMs) but operated and maintained by Telangana State Road Transport Corporation (TGSRTC) staff, the Ministry clarifies that the PM eDrive scheme currently supports an OPEX GCC model, with procurement managed by Convergence Energy Services Limited (CESL) through competitive bidding. The Hybrid GCC model is not presently under consideration within the PM eDrive framework. Finally, the Ministry states that EV retrofitment is not covered under the PM eDrive scheme, and therefore, access to the Payment Security Mechanism (PSM) is not applicable. The response was provided by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma, on July 29, 2025.
Key Entities Referenced
Telangana: A state in India that submitted a proposal for the deployment of 2,800 electric buses.
PM eDrive Scheme: A Government scheme under which Telangana requested deployment of electric buses. It supports e-buses through State city transport undertakings (STUs) on an operational expenditure (OPEX) gross cost contract (GCC) model.
DR. KADIYAM KAVYA: Member of Parliament who raised questions regarding support for electric bus fleet expansion in Telangana.
HEAVY INDUSTRIES: The Ministry that received the proposal from Telangana for electric buses.
SHRI BHUPATHIRAJU SRINIVASA VARMA: The Minister of State for Heavy Industries who answered the questions related to electric buses in Telangana.
TGSRTC: Telangana State Road Transport Corporation, whose staff would operate and maintain buses in the Hybrid GCC model proposed by the State.
Hybrid GCC model: A model where buses are provided by OEMs but operated and maintained by TGSRTC staff. Telangana requested permission to adopt this model.
CESL: The entity responsible for procurement of ebuses on aggregation model through competitive bidding under PM eDrive
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 1425
ANSWERED ON 29.07.2025
SUPPORT FOR ELECTRIC BUS FLEET EXPANSION IN TELANGANA
1425. DR. KADIYAM KAVYA:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) whether the Government has received a proposal from Telangana for the deployment of 2,800
electric buses under the PM e-Drive Scheme;
(b) whether the State has requested permission to adopt a Hybrid GCC model, where buses are
provided by OEMs but operated and maintained by TGSRTC staff to safeguard existing
employment;
(c) whether the Ministry is considering this employment-preserving model for approval under
national EV incentive schemes; and
(d) whether the Government proposes to extend support for EV retro-fitment initiatives and
allow TGSRTC access to the Payment Security Mechanism to ensure financial viability?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): Yes, the Government has received a proposal from Telangana for the deployment of 2,800
electric buses under the PM E-DRIVE Scheme.
(b) & (c): Under PM E-DRIVE, support for e-buses will be provided through State/ city transport
undertakings (STUs) on operational expenditure (OPEX)/ gross cost contract (GCC) model. Procurement
of e-buses on aggregation model through competitive bidding shall be done by CESL. The State of
Telangana has conveyed its intent to explore a Hybrid GCC model. However, currently, the model is
not being considered under the current framework of PM E-DRIVE Scheme.
(d): EV retro-fitment is not covered under PM E-DRIVE scheme, therefore, the question of access to
PSM does not arise.
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