India on e-wheels: How e-buses are transforming urban drivers’ lives in Odisha
Odisha's public bus fleet has expanded to 450 electric buses on road (as of August 2025), making the state the fifth-largest adopter of e-buses in India, with orders placed for 450 more.
The state-run bus service (rebranded from Mo Bus to AMA Bus in February 2025) now runs 80-90% of its fleet on electric power across Bhubaneswar, Cuttack and Puri, with expansion planned to Sambalpur, Jharsuguda, Keonjhar, Berhampur and Angul.
Drivers report reduced physical strain, cooler cabins and shorter, fixed 8-hour shifts compared to earlier diesel-bus routes that ran up to 180 km per shift; e-buses cover 100-120 km per single charge.
Charging infrastructure has expanded through 100 public charging stations under a public-private partnership model and depot-based charging at Naraj, Patrapada, Gadakana, Pokhariput and Chandrasekharpur.
The state's revised EV Policy targets 50% electrification of new stage carriages by 2029, 70% by 2036 and 80% by 2047, alongside continuing purchase incentives for e-buses.
PM e-Bus Sewa and the Gross Cost Contract (GCC) Model
PM e-Bus Sewa is a central scheme approved on 16 August 2023 by the Ministry of Housing and Urban Affairs to deploy electric buses in cities lacking organised public transport, through public-private partnership. A dedicated Payment Security Mechanism (PSM) sub-scheme was notified on 28 October 2024 with an outlay of Rs 3,435.33 crore to support deployment of more than 38,000 electric buses across India between FY 2024-25 and FY 2028-29. Under the Gross Cost Contract (GCC) model used for procurement, Public Transport Authorities do not pay the high upfront capital cost of buses (Rs 1.5-1.8 crore each); instead, private operators/OEMs invest in the buses and charging infrastructure and are paid a per-kilometre fee for operations and maintenance.
Key Details
- PM e-Bus Sewa covers cities with population between 3 and 40 lakh (2011 Census) and all state/UT capitals.
- The scheme is administered by the Ministry of Housing and Urban Affairs (MoHUA).
- GCC model shifts capital cost risk from cash-strapped municipal transport authorities to private operators.
Odisha's e-bus procurement and depot expansion illustrate the GCC-based public-private model that PM e-Bus Sewa promotes nationally, with the state's own incentive scheme (up to Rs 4 lakh per bus) supplementing central support.
PM E-DRIVE Scheme (successor to FAME)
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, launched in September 2024 with an allocation of Rs 10,900 crore, replaced the earlier Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. Within PM E-DRIVE, Rs 4,391 crore is earmarked to support deployment of 14,028 electric buses, alongside incentives for electric two-wheelers, three-wheelers and charging infrastructure.
Key Details
- FAME-I ran from 2015; FAME-II ran 2019-2024; both are now subsumed under PM E-DRIVE.
- PM E-DRIVE is administered by the Ministry of Heavy Industries, distinct from the urban-transport-focused PM e-Bus Sewa under MoHUA.
Odisha's fleet electrification draws on this layered central scheme architecture (MoHUA's PM e-Bus Sewa for urban deployment, Ministry of Heavy Industries' PM E-DRIVE for broader EV incentives) combined with state-level purchase subsidies.
Electric Vehicle Categories and Powertrain Basics
Electric buses are Battery Electric Vehicles (BEVs), which run purely on electric motors powered by onboard batteries charged externally, distinct from hybrid electric vehicles (which combine an internal combustion engine with a battery) and fuel-cell electric vehicles (which generate electricity onboard via a hydrogen fuel cell). BEVs produce zero tailpipe emissions, reducing urban air pollution and noise, which directly addresses the "heat, noise and smoke" concerns raised by drivers transitioning from diesel buses.
Key Details
- BEVs eliminate exhaust emissions entirely at point of use; overall emissions depend on the electricity generation mix.
- Gearless operation in BEVs (compared to manual-transmission diesel buses) reduces driver physical strain, a factor cited in Odisha's rollout.
The article's driver testimonials on reduced strain and heat directly stem from BEV characteristics (gearless drive, no combustion engine) as opposed to diesel or hybrid buses.
- Odisha had 450 e-buses on road by August 2025, with 450 more on order; the state ranks fifth nationally in e-bus adoption.
- Odisha's total EV Policy (2021) target was 50% electrification of new stage carriages within five years; only 20% had been achieved, prompting a revised policy with staggered targets of 50% (2029), 70% (2036), 80% (2047).
- State purchase incentives: 10% of ex-showroom price or Rs 2 lakh (whichever is lower) for non-AC e-buses; up to Rs 4 lakh for premium AC e-buses.
- PM e-Bus Sewa-PSM outlay: Rs 3,435.33 crore, targeting over 38,000 e-buses by FY 2028-29.
- PM E-DRIVE (2024) allocation: Rs 10,900 crore overall, with Rs 4,391 crore for 14,028 e-buses.
- Total registered vehicles in Odisha as of 31 December 2025: 26,22,089, of which buses form just 0.19%.