CESL moots to reduce 4 mn tonnes of CO2 emissions thru PM E-Drive
This large-scale initiative is projected to replace thousands of diesel buses and significantly improve air quality, noise levels, and overall living standards
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Vijayawada: Buoyed by nationwide appreciation for successfully concluding India’s largest mega tender for 10,900 electric buses under the PM E-Drive Scheme, Convergence Energy Services Limited (CESL)—a subsidiary of Energy Efficiency Services Limited (EESL) and the Centre’s nominated agency—has announced an estimated reduction of 4 million tonnes of CO₂ emissions.
Under the PM-eBus Sewa Scheme of the Ministry of Housing and Urban Affairs (MoHUA), 750 electric buses have been allocated to Andhra Pradesh, including 150 buses for Visakhapatnam. The APSRTC has already issued a Letter of Award (LoA) to the successful operator, paving the way for accelerated deployment of electric buses in the State. At a recent review meeting at Amaravati, Chief Minister N Chandrababu Naidu, directed the officials to take steps for replacing existing buses with e-buses all over the State.
The PM E-Drive Scheme, considered a revolutionary initiative to bring innovative vehicle enhancement, is being implemented by the Ministry of Heavy Industries since 2024 with a Rs10,900 crore outlay to substantially scale up EV adoption by offering subsidies, charging infrastructure and the ecosystem for manufacturing, provides direct purchase incentives to develop a stronger EV ecosystem. This large-scale initiative is projected to replace thousands of diesel buses and significantly improve air quality, noise levels, and overall living standards across five major cities in the country. Expressing profound gratitude to the Ministry of Heavy Industries (MHI) and the Ministry of Power (MoP) for their full support and guidance, Akhilesh Kumar Dixit, CEO of CESL and EESL, stated that the ministry’s backing enabled effective demand aggregation and the conclusion of the tendering process in a transparent and competitive manner.
He noted that the initiative is expected to substantially reduce India’s carbon footprint, modernise the public transport system, and provide a cleaner, quieter, and highly cost-effective alternative to traditional fossil fuel–based vehicles. In its report to the Union Government, CESL highlighted that the PM E-Drive Scheme will play a pivotal role in sustainable economic development and in achieving India’s Net Zero emissions target by 2070.
Under the PM E-Drive Scheme, 14,028 electric buses have been sanctioned. During Phase-I, tenders for 10,900 electric buses were issued. Technical bids were opened on November 14, 2025, with 16 bidders participating. Price bids were subsequently opened on December 23, 2025.
The tender covers major cities and State Transport Undertakings (STUs), including: Bengaluru – 4,500 buses, Delhi – 2,800 buses, Hyderabad – 2,000 buses, Surat – 1,600 buses, Ahmedabad – 1,600 buses. The procurement includes both AC and non-AC variants, spanning Standard Floor, Low Floor, and Bus Rapid Transit (BRT) models for city services. Key Achievements of CESL’s Demand Aggregation Model includes discovered Gross Cost Contract (GCC) rates are lower than the lowest rates previously achieved by individual Indian cities for e-bus operations, aggregation model brings down GCC rates on par with, or even lower than, CNG and diesel buses, making electric mobility financially viable and competitive.
