Karnataka Secures 750 eBuses, Seeks Direct Central Aid

Post by : Amit

Karnataka’s Electric Leap: 750 eBuses Approved Under PM-eBus Sewa Scheme

Bengaluru, July 24, 2025:
Karnataka is set to receive a significant boost in its transition to cleaner public transportation, with 750 electric buses sanctioned under the Centre’s flagship PM-eBus Sewa scheme. While the announcement signals a pivotal step toward greener mobility, the state government has raised a crucial policy concern—urging the Centre to directly fund its state-run transport corporations rather than routing support through urban local bodies (ULBs).

This dual narrative—of progress and plea—sheds light on the deeper structural challenges within India’s public transport funding ecosystem, even as electrification accelerates in major states like Karnataka.

A Green Signal for Karnataka: What the Scheme Offers

Under the PM-eBus Sewa scheme, the central government aims to deploy 10,000 electric buses across 100 cities nationwide, targeting cities with populations under 4 million that lack existing eBus infrastructure. Karnataka has emerged as a front-runner among participating states, securing 750 of these 10,000 buses.

These buses will be rolled out in seven cities across Karnataka, namely:

• Hubballi-Dharwad
• Davangere
• Mangaluru
• Kalaburagi
• Shivamogga
• Belagavi
• Mysuru

Each city is set to receive over 100 eBuses, tailored to their public transit needs and pollution control targets. According to the Ministry of Housing and Urban Affairs (MoHUA), these deployments are expected to cut urban emissions, improve air quality, and modernize urban transit systems with minimal infrastructure overhaul.

The scheme follows a Public-Private Partnership (PPP) model, where private operators manage bus services while the government supports operational viability with a per-kilometer payment structure.

Karnataka’s Request: Let the Funding Go to the Operators

However, the state government, led by Karnataka’s Transport Minister Ramalinga Reddy, has requested that central funding be routed directly to the State Road Transport Corporations (SRTCs)—specifically, the Karnataka State Road Transport Corporation (KSRTC) and its urban counterparts like the BMTC (Bangalore Metropolitan Transport Corporation).

Currently, the scheme mandates that the central share of viability gap funding (VGF) be routed through the urban local bodies (ULBs) of the respective cities. These ULBs are expected to sign contracts with bus operators, monitor service levels, and disburse funds accordingly.

But Reddy argues that SRTCs are far better equipped, both in expertise and logistical muscle, to manage public bus operations compared to relatively under-resourced ULBs. "If public money is involved, then our SRTCs must be the ones managing these buses. They already have decades of experience operating transport services across Karnataka," he said.

The Tug-of-War Over Control

This debate over who controls public transport operations—ULBs or state transport corporations—is not unique to Karnataka. It reflects a broader, long-standing tension in Indian urban governance, where decentralization mandates often conflict with state-level administrative dominance.

The Centre designed PM-eBus Sewa to empower ULBs, encouraging local innovation, citizen-responsive services, and urban accountability. However, many ULBs lack technical expertise, financial autonomy, and operational bandwidth to manage eBus fleets on their own.

State transport bodies like KSRTC, on the other hand, already operate large fleets, possess maintenance depots, and have existing trained workforce and SOPs. They argue that bypassing them in favor of ULBs risks operational inefficiency, delays in deployment, and sub-optimal utilization of assets.

In Karnataka’s case, the state government believes a hybrid model, where ULBs set broad goals but execution lies with SRTCs, would deliver better cost-efficiency and service quality.

Costs, Contracts, and Concerns: Inside the Business Model

Electric buses under the PM-eBus Sewa scheme will operate under a Gross Cost Contract (GCC) model. In this, a private company owns the buses and is responsible for maintenance and drivers, while the government pays a fixed amount per kilometer of service.

While this model minimizes upfront capital burden on governments, operational cost viability remains a key concern. Transport experts point out that electric buses, though cheaper in energy consumption, require subsidies to match the economics of diesel or CNG buses—especially in Tier-2 and Tier-3 cities with lower ridership levels.

Karnataka’s concern, therefore, is two-fold: how these subsidies are disbursed and who oversees service delivery. Without direct involvement of state corporations, the risk of inefficiencies and fund mismanagement may rise.

The Scale of Transformation: Karnataka’s Broader EV Vision

Karnataka has long been a front-runner in India's electric vehicle ecosystem. The state was one of the first to launch an EV policy, aiming to attract investments and build a robust charging and manufacturing ecosystem.

Earlier this year, Bengaluru introduced 300 electric BMTC buses, funded via the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) scheme. This rollout received widespread public support, with positive feedback on reduced noise, smoother rides, and improved air quality.

With the new allotment of 750 additional eBuses, Karnataka will significantly ramp up its electric bus footprint to over 1,000 vehicles, making it one of the largest such fleets in the country.

Cities like Mangaluru and Belagavi, previously underserved by modern bus systems, are expected to benefit from improved last-mile connectivity, especially in low-income and peri-urban zones.

Infrastructure Preparedness Still a Challenge

Despite the progress, the state faces major hurdles in charging infrastructure, land allocation for depots, and trained personnel.

Unlike conventional buses that can refuel in minutes, eBuses need high-capacity chargers and multi-hour charging cycles, necessitating dedicated depots and grid upgrades. The lack of reliable power infrastructure in non-metro cities like Kalaburagi or Shivamogga could delay operations unless addressed swiftly.

Moreover, driver and mechanic training for electric buses remains an ongoing challenge. KSRTC has proposed setting up dedicated training centers, but funding and curriculum design remain pending.

Citizens and Climate: What’s at Stake

India’s urban areas, especially in industrial and mining states like Karnataka, grapple with severe air pollution, traffic congestion, and deteriorating public transport systems.

According to the World Health Organization (WHO), over 14 Indian cities rank among the world's most polluted, and vehicular emissions contribute over 20% of urban particulate matter. Electrifying bus fleets not only helps cut these emissions, but also lowers noise pollution and improves commuter experience.

If executed effectively, the PM-eBus Sewa buses could replace over 20,000 diesel trips daily in Karnataka, reducing over 180 tonnes of CO₂ emissions per day—significantly contributing to both India’s Nationally Determined Contributions (NDCs) under the Paris Agreement and Karnataka’s State Climate Action Plan.

A Blueprint for Other States?

Karnataka’s stance may influence other states to seek similar amendments in the funding model. States like Tamil Nadu, Maharashtra, and Rajasthan have also expressed reservations about ULB-centric fund disbursal.

Transport policy analyst Dr. Vidya Ramesh of the Indian Institute for Human Settlements (IIHS) notes:

“We need a smart balance—ULBs should set goals and monitor, while operational expertise must rest with state transport corporations. Karnataka is rightly pushing for pragmatic delivery.”

If the Centre adapts the model to include state transport bodies without diluting ULB accountability, it could unlock smoother nationwide eBus rollouts and prevent bureaucratic bottlenecks.

Policy Decisions in Motion

As Karnataka waits for a formal response from the central government, the transport department has already begun preliminary planning for route rationalization, depot locations, and operator tenders.

The state is also exploring energy tie-ups with BESCOM and KPTCL to ensure power reliability for charging hubs, especially in cities where electric grid stability is still inconsistent.

Whether the Centre alters its stance or maintains the current ULB-first model, one thing is clear: Karnataka is charging forward. The addition of 750 electric buses marks a defining moment in its urban mobility evolution—but whether it delivers fully on its promise depends on funding structures, institutional readiness, and inter-agency collaboration.

Karnataka’s eBus journey under the PM-eBus Sewa scheme offers more than a case study in electrified transit—it surfaces deeper questions around urban governance, climate accountability, and who controls the future of mobility in India.

As cities swell and climate crises deepen, electric buses are no longer a choice—they are a necessity. The real challenge lies not in acquiring these vehicles, but in ensuring they’re operated with efficiency, inclusivity, and foresight.

Karnataka, eBus, PM-eBus Sewa Scheme