Himachal Pradesh to launch start-up bus scheme with up to 50% subsidy for youth

The Himachal Pradesh government is set to roll out Phase IV of the Rajiv Gandhi Swarozgar Start-up Yojana, offering subsidies and operational incentives to unemployed youth to run passenger buses while expanding public transport connectivity and promoting cleaner mobility across the state.

Under the scheme, eligible beneficiaries will receive a 50% subsidy to purchase electric buses and a 30% subsidy for diesel buses to operate services on around 1,000 identified routes across Himachal Pradesh, officials said on Monday.

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Besides the capital subsidy, the government will provide a monthly operational incentive of Rs 65,000 for electric buses and Rs 50,000 for diesel buses for five years, according to an official statement.

The scheme will be implemented by the Department of Labour, Employment and Overseas Placement in coordination with the Transport Department and district administrations. It will cover the entire state, with at least 10 routes identified in every sub-division. Passenger buses with a minimum seating capacity of 32, both electric and diesel, will be eligible.

The identified routes are aimed at improving connectivity to educational institutions, healthcare facilities, government offices, industrial areas, tourist destinations and remote panchayats.

Applicants must be bona fide residents of Himachal Pradesh between the ages of 25 and 50, possess a valid heavy driving licence, have at least three years of driving experience and personally operate the vehicle. Preference will be given to candidates registered with employment exchanges in the state, while selection will primarily be based on annual family income, with priority accorded to economically weaker applicants.

To ensure transparency and efficient service delivery, all buses operating under the scheme will be equipped with GPS-based vehicle tracking systems and monitored regularly.

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Women passengers travelling on buses operated under the scheme will receive a 50% concession on fares, while school students up to Class XII will be eligible for concessional travel through a special pass.

The state government expects the initiative to generate substantial self-employment opportunities for youth, strengthen rural connectivity, improve the public transport network, support tourism and local economic activity, and accelerate the adoption of cleaner transportation technologies.

Chief Minister Sukhvinder Singh Sukhu said, “The scheme reflects the state government’s commitment to empowering unemployed youth by enabling them to establish sustainable transport enterprises with reduced financial burden.”

He said the enhanced subsidy for electric buses “underscores the Government’s commitment to promoting green mobility, reducing carbon emissions and ensuring a cleaner environment for future generations.”

“The initiative would not only create sustainable livelihood opportunities but also accelerate the transition towards eco-friendly public transportation across the State,” he added.