**Policy Summary: Support for Electric Bus Fleet Expansion in Telangana**
This document summarizes the Indian Ministry of Heavy Industries' response to a parliamentary question regarding support for electric bus fleet expansion in Telangana under the PM eDrive Scheme.
The Ministry confirms receipt of a proposal from Telangana for the deployment of 2,800 electric buses.
The State of Telangana has expressed interest in a Hybrid Gross Cost Contract (GCC) model, where Original Equipment Manufacturers (OEMs) provide buses, but the Telangana State Road Transport Corporation (TGSRTC) operates and maintains them. However, the Ministry states that support under PM eDrive is provided through State city transport undertakings (STUs) on an OPEX GCC model, with procurement of e-buses via competitive bidding by Convergence Energy Services Limited (CESL). The Hybrid GCC model is currently not being considered under the existing PM eDrive framework.
Finally, the Ministry clarifies that EV retrofitment is not covered under the PM eDrive scheme; therefore, access to the Payment Security Mechanism (PSM) is not applicable.
Key Entities Referenced
Telangana: A state in India from which a proposal was received for the deployment of electric buses.
PM EDRIVE Scheme: A government scheme under which the state of Telangana requested support for the deployment of 2,800 electric buses.
TGSRTC: Telangana State Road Transport Corporation; the entity that the State requested permission for its staff to operate and maintain electric buses.
Hybrid GCC model: A model where buses are provided by OEMs but operated and maintained by TGSRTC staff. The State has requested permission to adopt this model.
SHRI BHUPATHIRAJU SRINIVASA VARMA: The Minister of State for Heavy Industries who provided the answer to the Lok Sabha question.
CESL: An entity responsible for the procurement of electric buses on aggregation model through competitive bidding.
Payment Security Mechanism: A mechanism to ensure financial viability, access to which TGSRTC requested for EV retrofitment initiatives.
Lok Sabha: The lower house of the Parliament of India, where the question regarding support for electric bus fleet expansion in Telangana was raised.
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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