The Central government is working on a ₹20,000 crore incentive scheme to accelerate the adoption of electric buses by private operators, who account for nearly 87% of India’s bus fleet. The proposed programme is expected to run over five years and is designed to make electric buses more affordable while expanding clean public transportation.
The scheme is expected to offer financial support through measures such as interest subvention on loans, reducing the cost of financing electric buses for private fleet operators. By lowering upfront costs, the government hopes to encourage large-scale adoption of zero-emission buses across intercity and state transport networks.
The initiative is part of India’s broader strategy to strengthen energy security, cut crude oil imports and reduce transport-related emissions. It also complements existing programmes such as PM E-DRIVE, which promote electric mobility and domestic EV manufacturing.
If approved, the incentive scheme is expected to stimulate demand for electric buses, boost domestic manufacturing, create new opportunities for EV ecosystem companies and accelerate India’s transition towards cleaner, more sustainable public transport.
