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PM eBus Sewa: Will Vidarbha’s Cities Ride the Green Wave?
- thenewsdirt
- Jul 11
- 6 min read
The Union Government’s PM eBus Sewa scheme aims to change urban transport across India by introducing electric buses to cities lacking robust public transport systems.
In Vidarbha, emerging urban centres, cities like Akola, Amravati, and Chandrapur, stand at a crossroads of opportunity.
The scheme aims to enhance connectivity, reduce pollution, and create jobs through a public-private partnership (PPP) model. With a focus on Tier-2 and Tier-3 cities, this initiative could reshape daily life for residents in these areas.
PM eBus Sewa Scheme: A Blueprint for Sustainable Urban Transport
The PM eBus Sewa scheme, approved by the Union Cabinet on 16 August 2023, is a Rs. 57,613 crore initiative to deploy 10,000 electric buses across 169 cities with populations exceeding 300,000, as per the 2011 census.
The scheme, backed by Rs. 20,000 crore in central funding, prioritises cities with no organised bus services and operates on a PPP model for 10 years.
It is divided into two segments: Segment A focuses on augmenting city bus services with electric buses, depots, and power infrastructure, while Segment B, known as Green Urban Mobility Initiatives (GUMI), supports infrastructure upgrades in 181 cities, including bus priority systems, multimodal interchange facilities, and National Common Mobility Card (NCMC)-based fare collection systems.
The scheme is expected to generate 45,000 to 55,000 direct jobs and significantly cut greenhouse gas emissions, noise pollution, and carbon emissions, aligning with India’s sustainability goals.
In October 2024, the Ministry of Heavy Industries introduced the PM eBus Sewa-Payment Security Mechanism (PSM) scheme with a Rs. 3,435.33 crore budget to support the deployment of over 38,000 electric buses by 2028-29.
This mechanism ensures timely payments to operators through Convergence Energy Services Limited (CESL), addressing financial constraints faced by public transport authorities (PTAs). The PSM scheme enhances the bankability of the project, encouraging private sector participation by mitigating the risks of payment defaults.
As of February 2025, 7,293 electric buses have been approved for deployment across 14 states and four Union Territories, with tenders floated for 3,825 buses in 49 cities by December 2023.
The scheme’s focus on Tier-2 and Tier-3 cities addresses a critical gap in India’s urban transport landscape.
Unlike metropolitan hubs, these cities often lack efficient public transport, forcing residents to rely on private vehicles or inadequate informal systems.
By introducing air-conditioned electric buses in sizes of 7, 9, and 12 metres, the scheme aims to provide modern, accessible, and eco-friendly transport options.
The inclusion of low-floor buses, with at least 25% of the fleet equipped with ramps for wheelchair users, reflects a commitment to inclusivity, though activists argue more needs to be done to ensure universal accessibility.
Vidarbha’s Urban Centres: Akola, Amravati, and Chandrapur in Focus
Vidarbha encompasses cities like Akola, Amravati, and Chandrapur, which are eligible for the PM eBus Sewa scheme due to their population sizes exceeding 300,000 as per the 2011 census.
Amravati is slated to receive 100 air-conditioned electric buses, positioning it as a key beneficiary in the region.
Akola and Chandrapur, while not explicitly mentioned in the same post, qualify under the scheme’s criteria, given their status as Tier-3 cities with limited organised bus services.
Maharashtra, as a whole, is set to receive 1,453 electric buses, the highest allocation among states, indicating significant potential for Vidarbha’s urban centres.
Amravati, a major administrative and commercial hub in Vidarbha, stands to gain substantially from the scheme. With its growing population and increasing urban sprawl, the city has long struggled with inadequate public transport. The deployment of 100 electric buses will enhance connectivity between residential areas, markets, and administrative centres, reducing dependence on auto-rickshaws and private vehicles.
The scheme’s emphasis on charging infrastructure and depot electrification will also address logistical challenges, ensuring sustainable operations. Pawan Mulukutla, Executive Programme Director for Integrated Transport at WRI India, noted in a September 2024 statement that the PSM scheme’s payment security measures will lower operational costs by fostering competition among private operators, a benefit that could directly impact Amravati’s transport ecosystem.
Akola, another key city in Vidarbha, faces similar challenges with fragmented transport systems. The city’s narrow roads and reliance on diesel-powered auto-rickshaws contribute to congestion and pollution.
The PM eBus Sewa scheme’s focus on eco-friendly buses could transform Akola’s urban mobility by introducing cleaner alternatives. However, the lack of specific allocation details for Akola raises concerns about its prioritisation compared to larger cities like Amravati.
The scheme’s “challenge method” for selecting cities, as outlined by Union Minister Anurag Thakur in August 2023, means Akola must compete with other eligible cities to secure funding and buses.
This competitive approach could disadvantage smaller cities if their proposals lack the technical or financial robustness required.
Chandrapur, known for its industrial and mining activities, has unique transport needs due to its environmental challenges. The city’s air quality, impacted by coal-based industries, makes the shift to electric buses particularly significant.
The International Council on Clean Transportation (ICCT) estimated in November 2024 that the first 3,825 electric buses under the scheme could avoid over 1,200 tonnes of NOx emissions and 700 tonnes of CO over 12 years, offering substantial public health benefits.
For Chandrapur, these reductions could improve living conditions for residents exposed to high pollution levels. However, like Akola, Chandrapur’s inclusion in the scheme remains uncertain without explicit allocation details, potentially leaving it on the sidelines if local authorities fail to submit compelling bids.
Challenges and Opportunities for Vidarbha’s Integration
The PM eBus Sewa scheme presents both opportunities and hurdles for Vidarbha’s Tier-2 and Tier-3 cities. The central government’s Rs. 20,000 crore subsidy and the PSM scheme’s financial safeguards create a conducive environment for scaling up electric bus operations.
For Amravati, the confirmed allocation of 100 buses signals a clear path towards improved urban mobility. Local transport corporations, such as the Maharashtra State Road Transport Corporation (MSRTC), can leverage the PPP model to ensure efficient operations, with CESL overseeing payment security to attract private investment.
The scheme’s focus on behind-the-meter power infrastructure, such as substations and charging stations, will also address the region’s limited electrification capacity, a critical factor for sustaining electric bus fleets.
However, Akola and Chandrapur face potential exclusion due to the scheme’s competitive selection process. The “challenge method” requires cities to submit detailed proposals, which may strain the administrative and financial capacities of smaller municipalities.
Amit Bhatt, Managing Director (India) of ICCT, emphasised in August 2023 that India’s formal city bus network is severely inadequate, with only 40,000 buses compared to China’s 700,000.
This gap underscores the urgency for cities like Akola and Chandrapur to secure funding, but their ability to do so depends on local governance efficiency and coordination with state authorities. The absence of organised bus services in these cities, while aligning with the scheme’s priority, also highlights the need for significant infrastructure upgrades, which could delay implementation.
Accessibility remains a concern across all three cities. The amended tender, as reported by The Indian Express in January 2024, mandates that 25% of buses include ramps or mechanisms for wheelchair users, responding to advocacy from groups like the Forum for Mobility and Choice (FMC).
Vaishnavi Jayakumar, an FMC member, acknowledged this progress but argued that limiting accessibility to a fraction of the fleet falls short of universal standards. For Vidarbha’s residents with reduced mobility, this partial measure may limit the scheme’s inclusivity, particularly in cities like Chandrapur, where industrial workers and elderly populations could benefit from fully accessible transport.
The scheme’s emphasis on “Made in India” buses, as highlighted in a September 2024 government statement, supports domestic manufacturing, potentially boosting Maharashtra’s industrial ecosystem.
However, the high initial costs of electric buses and the financial constraints of PTAs, as noted in a Financial Express report from November 2023, could slow adoption in smaller cities like Akola and Chandrapur if state support is inadequate.
The PM eBus Sewa scheme marks a pivotal moment for India’s urban transport landscape, with Vidarbha’s Tier-2 and Tier-3 cities poised to embrace a cleaner, more connected future.
Amravati’s allocation of 100 electric buses sets a promising precedent, offering a model for other cities to follow. Akola and Chandrapur, while eligible, must navigate the competitive selection process to secure their share of benefits.
The scheme’s success in these cities will depend on local authorities’ ability to align with national goals, leveraging central subsidies and private partnerships to build robust transport systems.
As India moves towards a greener tomorrow, the transformation of Vidarbha’s urban mobility could serve as a beacon for other regions, proving that sustainable transport is within reach for every corner of the nation.
References
Government of India. (2023, August 16). Cabinet approves “PM-eBus Sewa” for augmenting city bus operations; priority to cities having no organized bus service. Press Information Bureau.
Hindustan Times. (2023, August 16). Cabinet approves ₹57,613 cr PM-eBus Sewa; 100 cities to get 10k electric buses.
Ministry of Heavy Industries. (2024, October 28). PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme.
International Council on Clean Transportation. (2024, November 6). Emissions reduction and benefits of the first 3,825 electric buses under PM-eBus Sewa.
The Indian Express. (2024, January 6). Govt amends PM-eBus Sewa tender, adds 100 low-floor buses.
The Financial Express. (2023, November 20). Ten states, UTs to receive 3,600 e-buses under PM-eBus Sewa.
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