Ministry of Heavy Industries
PM-eBUS SEWA-PAYMENT SECURITY MECHANISM (PSM) SCHEME
Posted On:
10 MAR 2026 4:13PM by PIB Delhi
PM e-Bus Sewa–PSM Scheme was notified on 28.10.2024. The details of implementation progress is as below:
- Scheme guidelines and Standard Operating Procedure (SOP) were published.
- 19 States/UTs have submitted the Direct Debit Mandate (DDM) to Reserve Bank of India as on 10.12.2025.
- As on 28.02.2026, Tender for 6,228 number of buses were concluded under PM-eBus Sewa Scheme.
- Letter of Award for 4720 buses have been issued by Public Transport Authorities (PTA).
- Tender for 10,900 buses under PM E-DRIVE scheme are concluded and tender for 2,900 buses is under progress.
- Rs. 500 crore has been disbursed to Convergence Energy Services Ltd. (CESL) to set up the PSM Fund in FY 2025-26.
In the state of Gujarat, 750 buses have been sanctioned under PM-eBus Scheme and Letter of Award (LoA) for 555 numbers of buses have been issued by PTA. The State wise details of the allocated e-buses are as below:-
|
S. No.
|
State/UT
|
No of buses
|
|
PM E-DRIVE (MHI)
|
PM-eBus Sewa (MoHUA)
|
Total
|
|
1
|
Gujarat
|
1,800
|
750
|
2,550
|
|
2
|
Karnataka
|
4,500
|
750
|
5,250
|
|
3
|
Maharashtra
|
2,500
|
1,609
|
4,109
|
|
4
|
Telangana
|
2,200
|
151
|
2,351
|
|
5
|
Delhi
|
2,800
|
-
|
2,800
|
|
6
|
Andhra Pradesh
|
-
|
1,050
|
1,050
|
|
7
|
Madhya Pradesh
|
-
|
972
|
972
|
|
8
|
Meghalaya
|
-
|
55
|
55
|
|
9
|
Odisha
|
-
|
400
|
400
|
|
10
|
Punjab
|
-
|
447
|
447
|
|
11
|
Puducherry
|
-
|
75
|
75
|
|
12
|
Rajasthan
|
-
|
1,150
|
1,150
|
|
13
|
J&K
|
-
|
200
|
200
|
|
14
|
Assam
|
-
|
100
|
100
|
|
15
|
Uttarakhand
|
-
|
137
|
137
|
|
16
|
Manipur
|
-
|
50
|
50
|
|
17
|
Arunachal Pradesh
|
-
|
50
|
50
|
|
18
|
Goa
|
-
|
50
|
50
|
|
19
|
Haryana
|
-
|
450
|
450
|
|
20
|
Bihar
|
-
|
400
|
400
|
|
21
|
Chhattisgarh
|
-
|
240
|
240
|
|
22
|
Kerala
|
-
|
293
|
293
|
|
23
|
Himachal Pradesh
|
-
|
50
|
50
|
|
24
|
Dadra and Nagar Haveli and Daman and Diu
|
-
|
50
|
50
|
|
25
|
Chandigarh
|
-
|
428
|
428
|
|
26
|
Ladakh
|
-
|
48
|
48
|
|
27
|
Andaman & Nicobar Islands
|
-
|
45
|
45
|
|
|
Total
|
13,800
|
10,000
|
23,800
|
Convergence Energy Services Ltd. (CESL) acts as the Central Implementing Agency for Scheme, managing the dedicated Payment Security Fund to ensure timely payments to electric bus operators. CESL will review and verifies payment claims in accordance with the Concession Agreements (CA) and scheme guidelines. CESL is also responsible for developing the SOPs for fund disbursement and for aggregating e-bus operations at the national level under the Gross Cost Contract (GCC) model.
PSM Scheme provides payment security coverage for a period of up to 12 years for each bus deployed under the Scheme. Usually, timeline for deployment of buses is considered to be two (2) years from signing of CA between PTA and OEM.
As of 02.03.2026, 19 State/UTs have submitted the Direct Debit Mandate (DDM) to the Reserve Bank of India (RBI) who have either participated under PM E-DRIVE Scheme of Ministry of Heavy Industries or PM-eBus Sewa Scheme of Ministry of Housing and Urban Affairs (MoHUA).
This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha.
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