Bengaluru's 4,500 E-Bus Contract: Three Companies Emerge as Lowest Bidders, Karnataka Government Approval Pending

Bengaluru Set to Receive 4,500 Electric Buses Under PM e-Drive Scheme

The Bengaluru Metropolitan Transport Corporation (BMTC) is awaiting the Karnataka government's nod to award a tender to supply and operate 4,500 electric buses in Bengaluru under the Centre's PM e-Drive scheme. The tender, floated by state-run Convergence Energy Services Limited (CESL) on June 27, 2025, has seen three companies emerge as the lowest bidders: Greencell Mobility, Chartered Speed Limited, and PMI Electro Mobility.

Greencell Mobility Leads AC Segment Bids

BMTC sources said Mumbai-based Greencell Mobility has emerged as the lowest bidder in the AC bus category for both segments. The company has quoted Rs 70.65/km for 300 low-floor (12 m) buses and Rs 60.94/km for 100 low-floor (9 m) buses. In contrast, existing contracts with OHM Global Mobility, a subsidiary of Ashok Leyland, operate AC electric buses for BMTC at Rs 65.80/km under the gross cost contract (GCC) model.

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Non-AC Segment Split Between Chartered Speed and PMI Electro

In the non-AC category, Gujarat-based Chartered Speed Limited is the lowest bidder for 3,500 low-floor (12 m) buses at Rs 62.92/km, while Haryana-based PMI Electro Mobility has quoted Rs 55.55/km for 600 low-floor (9 m) buses. BMTC officials said these are the lowest bids received and that the state-run transporter is awaiting state government approval to issue Letters of Award (LoA).

Rates Higher Than Some Existing Contracts

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The discovered rates are higher than some existing contracts. For instance, BMTC pays around Rs 41/km to Tata Motors (tendered by Convergence Energy Services Limited), Rs 51/km to JBM in partnership with NTPC under Bengaluru Smart City scheme, and Rs 48.9/km to Switch Mobility under the Centre's FAME-II scheme. "Operators appear to have quoted higher rates to sustain operations, as driver salaries and maintenance costs are high," a source said.

State Flags Concerns Over GCC Operations

In October 2025, Karnataka Transport Minister Ramalinga Reddy raised concerns over deteriorating operational standards of electric bus services run by private operators under the GCC model in Bengaluru. He flagged issues such as frequent breakdowns, driver strikes, and safety concerns, urging the Centre to intervene.

Bengaluru Gets Highest Allocation Under PM e-Drive

The Centre has floated tenders for 10,900 electric buses across five major cities under the PM e-Drive scheme to accelerate urban transport decarbonisation. Bengaluru had received the highest allocation of 4,500 buses, followed by Delhi (2,800), Hyderabad (2,000), Ahmedabad (1,000), and Surat (600). The tender was floated by CESL on June 27, 2025, under the GCC model, in line with Ministry of Heavy Industries guidelines.