UT seeks MHA nod to acquire 100 e-buses to replace diesel fleet

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Chandigarh: The Chandigarh administration has sought financial approval from the ministry of home affairs (MHA) for Rs 595.50 crore to acquire 100 new electric buses through e-tender for a 12-year period. These electric vehicles are intended to replace the existing diesel buses scheduled for retirement in November.
Following prolonged delays exceeding a year from the Ministry of Housing and Urban Affairs (MoHUA) in providing electric buses under the PM E-Bus Sewa Scheme due to legal complications, the UT transport department has decided to proceed independently. They have developed a comprehensive financial model and forwarded it to the MHA for approval, aiming to secure 100 new electric buses by November.
The administration has highlighted to the MHA that transitioning from diesel to electric buses would result in savings of approximately Rs 9.55 crore, based on comparisons of various operational costs including capital, fuel, manpower, and maintenance expenses.
In their communication to the MHA, the UT administration said, “It is informed that as per the delegation of financial powers of the Chandigarh administration, the UT administrator is competent to accord approval for works amounting to Rs 100 crore. Since in this case there is a financial implication amounting to Rs 595.50, approval from the MHA will be required.”

“It is therefore requested that administrative approval be accorded to float an e-tender amounting to Rs 595.50 crore, following the same lines as the RFP floated by MoHUA for the PM E-Bus Sewa Scheme to acquire 100 buses for a period of 12 years through the e-tendering process.”
“It is intimated that the rates per km have been based on the rates received per km in the e-tender floated by MoHUA through Convergence Energy Services Limited (CESL) without revision of the per km fee. It is also specifically mentioned that the per km rates mentioned above are inclusive of electricity charges.”
Savings from e-buses
Providing details of the current electric bus operations in the city to the MHA, the UT administration said 80 electric buses are in operation in Chandigarh, hired in two lots. The first lot of 40 e-buses was put into commercial operation in Nov 2021 by Ashok Leyland at a rate of Rs 59.98 per km. The second lot of 40 e-buses began operation in Oct 2022 by VE Commercial Vehicles Ltd at a rate of Rs 44.99 per km. Since the operation of these 80 e-buses, there has been a diesel saving of 3310 KL and a reduction of 8,740 tons of carbon emissions as of April 29, 2025.
Condemnation chart of buses in Chandigarh
Financial Year———–Condemnation Tri-city————Condemnation Long Route
2025-2026———————-100 Buses——————————–0
2026-2027———————–170 Buses——————————-88
Total——————–358 Buses