Adani Group, Tata Motors And Major OEMs Likely To Compete For Mega E-Bus Tender Under PM E-DRIVE Scheme: Report

India’s largest infrastructure and automotive players are preparing to bid for one of the country’s biggest public transport electrification drives, as the tender for 10,900 electric buses under the PM eDRIVE scheme opens on 6 November, Economic Times reported.

The Adani Group, National Investment and Infrastructure Fund (NIIF), and Canadian Pension Fund are among those expected to join established electric bus manufacturers such as Tata Motors, JBM Auto, Olectra Greentech, and Switch Mobility in the bidding process.

The surge in interest follows a key change in the eligibility criteria, which now allows consortia of up to three participants to bid including infrastructure operators and service providers.

Previously, only original equipment manufacturers (OEMs) were eligible to both supply and operate buses under a fixed payment model.

“The eligibility criteria have been altered to allow operators to bid in partnership with OEMs; large infrastructure companies can now also participate. This opens up the bid to even those parties which have nothing to do with electric buses,” a senior official was quoted as saying in the report.

The government hopes the revised structure will ensure stronger participation and wider financing options.

Officials said that in the pre-bid meeting, all major OEMs expressed interest, with some manufacturers’ earlier concerns such as balance sheet strain which are now addressed through amended bid conditions.

The e-bus deployment covers Delhi, Bengaluru, Ahmedabad, Surat, and Hyderabad, forming the first phase of the PM eDRIVE programme, which has a total budget outlay of Rs 4,391 crore for 14,028 buses.

However, industry players have flagged concerns about depot readiness, high voltage supply access, and stringent bank guarantee terms.

“The performance bank guarantee (PBG) is 3 per cent of total project revenue, which itself comes to Rs 500 crore,” said Olectra Greentech MD Mahesh Babu, urging a reduction.

Despite past delays in subsidy disbursals under FAME schemes, several OEMs have indicated plans to participate, signalling optimism in India’s expanding electric mobility ecosystem.

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