India: CESL to launch tender for 10,900 electric buses

India’s state-owned Convergence Energy Services Limited (CESL) will open a tender next week to procure 10,900 electric buses under the National Electric Bus Programme. The initiative will cover major urban centres and multiple bus categories.

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The large-scale tender will open on 6 November 2025. The project, implemented under India’s National Electric Bus Programme (NEBP), aims to accelerate the adoption of zero-emission buses across major cities, including Hyderabad, Surat, Ahmedabad, Delhi and Bengaluru.

According to the allocation plan, Hyderabad will receive around 2,000 buses, Surat and Ahmedabad together will add 1,600, Delhi will induct 2,800, while Bengaluru will account for the largest share with 4,500 electric buses. The tender encompasses several bus types, including Standard Floor, Low Floor, and Bus Rapid Transit (BRT) models, available in both air-conditioned and non-air-conditioned versions.

Successful bidders will sign agreements with the respective City Transport Undertakings (CTUs) to oversee the deployment, operation and maintenance of the buses. Each operator will be responsible for establishing charging depots and will have to adhere to strict service-level agreements covering uptime, energy efficiency and passenger comfort.

According to local media, CESL’s aggregation-based procurement model, operating under a Gross Cost Contract (GCC) framework, allows private operators to own, operate and maintain the buses while receiving a fixed per-kilometre payment from city authorities. This structure reduces financial pressure on municipal administrations while promoting large-scale deployment of electric buses.

Each electric bus introduced under the programme will replace a conventional diesel model. Beyond reducing emissions, the deployment is expected to lower noise pollution and improve air quality across India’s most densely populated metropolitan areas.

outlookbusiness.com, indiatimes.com

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