BMTC fleet to touch 10,000 as Centre okays 4,500 e-buses

Bengaluru: With the Union government approving 4,500 buses for the city under a newly launched scheme, the Bengaluru Metropolitan Transport Corporation (BMTC) is expected to have nearly 10,000 vehicles in its fleet in the next two years. 

The Ministry of Heavy Industries on Thursday announced the allocation of 10,900 electric buses to five cities under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. 

At 4,500, Bengaluru will get the lion’s share of these buses. Delhi will get 2,800 e-buses, Hyderabad 2,000, Ahmedabad 1,000 and Surat 600. 

Speaking to reporters in New Delhi on Friday, H D Kumaraswamy, Minister of Heavy Industries and Public Industries, said that the prime minister had the goal of reducing land transport pollution to zero by 2030. “We are striving to make his dream a reality by providing electric buses under this scheme,” he added. 

N V Prasad, Secretary of the Transport Department, confirmed that the ministry had agreed to provide 4,500 e-buses to Bengaluru. 

“The scheme will run until March 2027. These buses will be leased under the Gross Cost Contract (GCC), with the government of India calling tenders. Any type of buses — AC, non-AC, low-floor or high-floor — can be leased under this scheme,” he told DH. 

Karnataka had originally sought 5,000 e-buses for Bengaluru, a requirement of 10,000-12,000 buses to meet the city’s growing demand. 

The scheme is expected to strengthen the Bengaluru Metropolitan Transport Corporation’s (BMTC) efforts to expand its fleet, which currently stands at 6,903, including 1,421 e-buses. 

On average, 400-500 overage buses are retired every year. By the implementation of this scheme, the BMTC is expected to have nearly 10,000 buses.  Under PM E-DRIVE, the Centre will spend Rs 4,391 crore on subsidies to procure 14,028 e-buses in nine cities with a population of 40 lakh or more. 

The subsidy will be Rs 35 lakh per standard bus (10-12 metres), Rs 25 lakh (midi bus, 8-10 metres) and Rs 20 lakh (minibus, 6-8 metres). 

Only e-buses with an ex-factory price of less than Rs 2 crore will be incentivised. 

The BMTC will deposit money into an escrow account to pay the bus manufacturer on a per-kilometre basis under GCC model, with a minimum daily assured distance. Except for conductor salaries, all operational costs will be borne by the bus manufacturer. 

If the BMTC fails to pay the bus manufacturer, the state government will step in. If the state also fails to pay, the union government will debit the money from the Consolidated Fund of India, according to a senior government official.