The Ministry of Heavy Industries (MHI), Govt. of India, has notified PM e-Bus Sewa-PSM Scheme through Gazette notification S.O. 4711(E) on October 28, 2024. The scheme has an allocated budget of Rs. 3,435.33 crore. The scheme will support deployment of more than 38,000 electric buses in the country. 

The objective of scheme is to provide payment security in case of default by Public Transport Authorities (PTAs) for making timely payment to the selected bidders/operators/OEMs on their monthly payment obligations for operations of electric buses. Additionally, the fund will support capacity building and training initiatives, fostering the adoption of innovative technologies by PTAs to optimize electric bus operations.