Karnataka seeks 5,000 e-buses for Bengaluru under central scheme

Bengaluru: Karnataka is seeking 5,000 electric buses for Bengaluru under a newly launched central government scheme to bolster the city’s public transport system and address its notorious traffic congestion. 

On September 29 this year, the Ministry of Heavy Industries launched the PM E-DRIVE scheme. 

Although a new scheme, it incorporates elements of the FAME schemes, which ran from April 1, 2015, to March 31, 2024, and provided Rs 12,395 crore to promote electric vehicles. 

Under PM E-DRIVE, the Centre will spend Rs 10,900 crore, including Rs 4,391 crore on 14,028 e-buses in nine large cities. The ministry is expected to finalise the scheme details in three months. 

Karnataka aims to get 5,000 e-buses for Bengaluru alone. 

LK Atheeq, Additional Chief Secretary (Finance), believes Bengaluru requires 10,000-12,000 buses to optimally shift to public transport. 

"We currently have over 6,000 BMTC buses, while 400-500 overage buses are retired every year. There is an urgent need to expand the fleet and ensure it doesn't get depleted," he told DH. "We are going to demand 5,000 buses and hope to get a good share." 

Atheeq explained that the state Finance Department, after initial hesitance, had agreed on a payment security mechanism for PM E-DRIVE. Accordingly, the BMTC will open an escrow account and deposit funds into it. If it fails to pay the bus manufacturer as per the lease agreement, 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. 

"We approved this mechanism because the BMTC has a good payment track record. In case of non-payment, the government will debit money from the Shakti scheme reimbursement and other financial commitments to the BMTC," Atheeq said. 

NV Prasad, Secretary of the Transport Department, said that the state was waiting for the Centre to formulate guidelines for the scheme. 

Ramachandran R, Managing Director, BMTC, said: "Bengaluru is one of the nine cities under PM E-DRIVE, but we don't know how many buses we will eventually get." 

What's the PM E-DRIVE scheme? 

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) was notified on September 29, 2024. 

The Centre will spend Rs 10,900 crore under this scheme until March 31, 2026, including Rs 4,391 crore on subsidies for procurement of 14,028 e-buses in nine large cities with a population of 40 lakh or more. 

The subsidy will range from Rs 20 lakh to 35 lakh based on bus size. No bus will cost more than Rs 2 crore. 

State transport undertakings will lease the buses on a per-kilometre basis with minimum daily assured kilometres under Gross Cost Contract (GCC). 

Karnataka wants 5,000 buses for Bengaluru alone, citing the city's requirement for 10,000-12,000 buses. 

The Bengaluru Metropolitan Transport Corporation (BMTC) has only 6,500 buses, including 1,231 non-AC e-vehicles. These include 90 e-buses leased under the Smart Cities Mission, 300 buses under FAME I, and 841 buses under FAME II. Another 80 e-buses under FAME II are expected soon. 

It is also leasing 320 A/C e-buses to replace ageing Volvo vehicles and plans to lease 120 midibuses and 10 double-deck e-buses.