Hans News Service Amaravati

Thestate has launched one of India’s most ambitious public transport transitions, with the State government approving the induction of 1,950 new green buses as part of its plan to convert the entire APSRTC fleet of 10,661 buses with electric vehicles by 2029.

Chief Minister N Chandrababu Naidu has directed APSRTC to procure only air-conditioned electric buses in future, positioning the State’s public transport system for a complete shift away from diesel under the AP State Electric Mobility Policy (SEMP) 4.0.

The government has approved procurement of 1,450 electric buses under the Gross Cost Contract (GCC) model and 500 CNG buses through direct purchase, with tenders already under way. Of these, the Centre has sanctioned 1,050 electric buses under the PM eBus Sewa Scheme, backed by substantial financial support that significantly lowers APSRTC’s costs.

The Centre will bear 100 per cent of electrical infrastructure costs, 60 per cent of civil infrastructure costs, besides providing Rs 24 per km for 12-metre buses and Rs 22 per km for 9-metre buses for up to 10 lakh kilometres or 12 years.

The incentive package is expected to fetch about Rs 1,774 crore for APSRTC. The Centre has already sanctioned Rs 145.39 crore for charging and depot infrastructure.

Unlike earlier FAME-II contracts, the new procurement has been finalised at substantially lower operating costs through CESL, with 12-metre buses costing Rs 48.55 per km for the first 200 km and Rs 36.28 thereafter, while 9-metre buses will operate at Rs 40.17 per km, making electric operations commercially more attractive. To address concerns over privatisation, the government categorically clarified that APSRTC depots are not being leased to private operators. Operators will only use designated garage space for charging and maintenance during the contract period, after which the facilities will revert entirely to APSRTC. The land will continue to remain with the Corporation.

Equally significant, the Chief Minister reiterated that no APSRTC employee will lose his or her job because of electric buses. Employees shifted from depots undergoing electrification works will be redeployed and later brought back after commissioning. APSRTC is also floating India’s first ‘Dry Lease’ model for electric buses to utilise surplus drivers while protecting employee interests.

The first phase will deploy 750 electric buses across 12 depots in 11 cities, while new greenfield e-bus depots are being developed at Simhapuri and Rajahmundry, with additional facilities planned at Tirupati, Tirumala, Kuppam and other locations as Andhra Pradesh accelerates its transition towards a fully electric public transport network.