Centre wraps up mega e-bus tender; PMI bags half of 10,900 buses

By Admin

25 Dec, 2025

Introduction
The Government of India has successfully concluded the country’s largest electric bus tender under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. This landmark initiative marks a significant step toward accelerating electric mobility in India’s urban public transport system. Among all bidders, PMI Electro has emerged as the biggest winner, securing nearly half of the total buses on offer.

PMI Electro Emerges as the Largest Winner
PMI Electro has bagged orders for 5,210 electric buses out of the total 10,900 buses tendered, making it the primary beneficiary of the PM E-DRIVE mega tender. With this win, PMI Electro further strengthens its leadership position in India’s electric bus segment.
Currently, the company holds around a quarter share of the 4,239 electric buses sold in India during 2025 and already has an existing order book of 3,000 buses. This latest allocation firmly establishes PMI Electro as the country’s largest electric bus manufacturer.

Other Key Beneficiaries in the Tender
Following PMI Electro, EKA Mobility, a subsidiary of Pinnacle Industries, emerged as the second-largest beneficiary by securing orders for 3,485 buses. Olectra followed with 1,785 buses, while the remaining 420 buses were awarded to the Anthony Travels consortium.
In total, the financial bids of 14 technically qualified bidders were opened, and according to Convergence Energy Services Limited (CESL), the rates discovered were attractive and lower than the initial estimates.

Market Shift and Industry Impact
One of the most notable outcomes of the tender was the absence of major conventional bus manufacturers among the winners. Established players such as Tata Motors, VE Commercial Vehicles, and JBM Auto failed to secure any orders.
In Ashok Leyland’s case, the government stated that the company did not successfully submit its bid. Ashok Leyland, through its subsidiary OHM Global Mobility, has challenged this decision in the Delhi High Court, citing a technical issue on the CESL portal. While the company claimed that all required documents were uploaded, CESL maintained that the bid submission was never successfully received.

Legal Developments and Tender Finalisation
The announcement of the successful bidders came after seeking legal advice, according to senior officials. Ashok Leyland had requested CESL to defer the tender finalisation due to the pending court case, but the Centre proceeded with the conclusion of the tender after months of delays.
With the tender now finalised, deployment of the electric buses is expected to begin next year, paving the way for large-scale adoption of clean public transport.

City-wise Allocation Under PM E-DRIVE
Under the current phase of the PM E-DRIVE scheme, electric buses have been allocated to major Indian cities, reflecting a strong push for sustainable urban mobility. Around 4,500 buses have been allocated to Bengaluru, 2,000 to Hyderabad, 2,800 to Delhi, 1,000 to Ahmedabad, and 600 to Surat. This allocation highlights the government’s focus on reducing emissions and improving public transport infrastructure in high-density urban centres.

GCC Framework and Operational Model
The tender has been executed under the Gross Cost Contract (GCC) framework. Under this model, private operators will be responsible for the ownership, operation, and maintenance of the electric buses. They will also handle the development of charging infrastructure and energy management systems at depots provided by city authorities.
City Transport Undertakings (CTUs) will issue Letters of Award and enter into concession agreements directly with the selected operators. In return, city transport agencies will pay a fixed per-kilometre fee, ensuring affordability, predictable costs, and long-term financial sustainability.

Conclusion
The conclusion of the 10,900 e-bus tender under the PM E-DRIVE scheme marks a transformative moment for India’s electric mobility journey. With PMI Electro leading the way and significant allocations planned across major cities, the initiative is set to reshape urban transportation. Despite legal and procedural challenges, the tender’s completion signals strong momentum toward cleaner, more efficient, and sustainable public transport systems across the country.