India: CESL launches tender for 6,230 electric buses

Convergence Energy Services Limited (CESL), a green energy-focused venture of the Indian government, has launched a new tender to allocate 6,230 electric buses across five major cities. It will accept bids until 10 March.

Mtc chennai electric busses india cropped — Image: MTC Cennai

CESL is seeking bus operators who will procure, supply, operate, and maintain the electric buses, as well as develop associated electrical and civil infrastructure, under a Gross Cost Contracting (GCC) model. It plans to allocate 3,330 electric buses to Delhi alone, comprising 500 7-metre low-floor AC units, 2,330 9-metre low-floor AC units, and 500 low-floor AC units.

The remaining 2,900 units of the total 6,230 electric buses mark the second phase of the PM E-Drive Scheme, under which the Ministry of Heavy Industries (MHI) plans to deploy 14,028 electric buses across nine major cities. In the first phase, CESL allocated 10,900 electric buses to five cities last year.

Of the 2,900 electric buses, CESL will allocate 200 units to Ahmedabad (Gujarat), 200 units to Hyderabad (Telangana), 1,500 units to Mumbai (Maharashtra), and 1,000 units to Pune (Maharashtra). For Ahmedabad, Hyderabad, and Mumbai, it is seeking a fleet entirely comprising 9-metre BRT (bus rapid transit) AC units, 12-metre low-floor non-AC units, and 9-metre low-floor AC units, respectively. For Pune, it plans a mix of 200 units of 9-metre non-AC units and 800 units of 12-metre BRT non-AC units.

According to a recent report from Mint, the prices of electric buses in India typically range from 8.5 million rupees (approx. 81,000 euros) to 18 million rupees (approx. 171,000 euros), and assuming 10 million rupees (approx. 95,000 euros) as the average cost of each electric bus, the tender could be valued at well over 60 billion rupees (approx. 571 million euros). For the 2,900 electric buses
that form the second phase of the PM E-Drive Scheme, MHI requires that the ex-factory price be below 20 million rupees (approx. 190,000 euros) per unit.

Adoption of electric buses in India is rising, with annual sales having grown from 1,988 units in 2022 to 4,408 units in 2025. Government initiatives like ‘Faster Adoption and Manufacturing of Hybrid and Electric Vehicles‘ (FAME), PM e-Bus Sewa, and PM E-Drive Scheme have started making electric buses the new normal for public transport across major cities.

convergence.co.in (PDF), pib.gov.in, livemint.com