PM-EBUS SEWA– PAYMENT SECURITY MECHANISM (PSM) SCHEME

Posted On: 17 MAR 2026 4:50PM by PIB Delhi PM e-Bus Sewa&ndash;PSM Scheme was notified on 28.10.2024. The details of implementation progress is as below: Scheme guidelines and Standard Operating Procedure (SOPs) have been published. 19 States/UTs have submitted the Direct Debit Mandate (DDM) to Reserve Bank of India as on 12.03.2026. As on 28.02.2026, Tender for 6,228 number of buses were concluded under PM-eBus Sewa Scheme of MoHUA. 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 CESL in the first tranche to set up the PSM Fund in FY 2025-26. In the city of Jhansi and Lalitpur, no demand for allocation of e-buses under PM-eBus Sewa Scheme has been received from the State Authority. The State wise details of the allocated e-buses are provided in Annexure. 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 reviews 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. Convergence Energy Services Ltd. (CESL) reviews and verifies payment claims in accordance with the Concession Agreements and scheme guidelines. In case of payment default by Public Transport Authorities (PTAs), CESL may disburse the approved amount from the Payment Security Fund to the operator’s escrow account and subsequently undertake recoupment from the concerned State/authority within the prescribed timeline, along with the applicable surcharge. If the PTA fails to repay the disbursed amount with Late Payment Surcharge(LPS) within 90 days, MHI will request RBI to invoke the Direct Debit Mandate (DDM). RBI shall debit the State Government/UT account and credit the Scheme Fund, including the applicable LPS. 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 Concession Agreements (CA) between PTA and OEM. As of 12.03.2026, 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 MHI or PM-eBusSewa Scheme of Ministry of Housing and Urban Affairs (MoHUA).Since buses are under deployment stage, hence no payment default is reported by PTA as on date and no claim is processed under PSM Scheme. This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha today. ***** TPJ Annexure S.No State Cities Sanctioned Buses 1 Gujarat Surat 600 Ahemdabad 1,200 2 Karnataka Bengaluru 4,500 3 Maharashtra Mumbai 1,500 Pune 1,000 4 Telangana Hyderabad 2,200 5 Delhi Delhi 2,800 A Total (PM E-DRIVE) 13,800 S.No. State Cities Sanctioned Buses 1 Andhra Pradesh Amaravati 50 2 Anantapur 50 3 Guntur 100 4 Kadapa 50 5 Kakinada 50 6 Kurnool 50 7 Nellore 100 8 Rajahmundry 50 9 Tirupati 350 10 Vijayawada 100 11 Visakhapatnam 100 12 Gujarat Bhavnagar 100 13 Gandhidham 50 14 Navsari 50 15 Gandhinagar 100 16 Jamnagar 50 17 Junagadh 50 18 Rajkot 100 19 Vadodara 250 20 Madhya Pradesh Bhopal 195 21 Indore 270 22 Jabalpur 200 23 Sagar 32 24 Gwalior 100 25 satna 20 26 Dewas 55 27 Ujjain 100 28 Maharashtra Ahilyanagar 40 29 Akola 50 30 Amravati 50 31 ChatrapatiSambhajinagar 100 32 Bhiwandi 100 33 Chandrapur 50 34 Dhule 28 35 Ichalkaranji 25 36 Jalgaon 50 37 KalyanDombivli 100 38 Kolhapur 100 39 Latur 50 40 Mira Bhainder 100 41 Nagpur 150 42 Nashik 100 43 Sangli 50 44 Solapur 100 45 Thane 100 46 Ulhasnagar 100 47 Vasai Virar City 100 48 Malegaon 26 49 Prabhani 40 50 Meghalaya Shillong 55 51 Odisha Sambalpur 50 52 Berhampur 50 53 Bhubaneswar 100 54 Rourkela 100 55 Cuttack 100 56 Puducherry Puducherry 75 57 Rajasthan Ajmer 100 58 Alwar 100 59 Bhilwara 50 60 Bikaner 125 61 Jaipur 450 62 Jodhpur 125 63 Kota <span sty