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https://e-vehicleinfo.com/state-wise-ev-policies-for-electric-bus-in-india/NEMMP 2020

Unveiled in 2013, the national-level guidance document providing a vision and roadmap for faster adoption and manufacturing of EVs (full range of hybrid & electric vehicles) in India.
The National Electric Mobility Mission Plan (NEMMP) aims to achieve 6-7 million units of hybrid and electric vehicle sales in India by 2020.

FAME 1 Scheme

As an initiative under NEMMP, the Department of Heavy Industries (DHI) formulated a FAME scheme to support the market development of EVs and the manufacturing ecosystem. It has four focus areas: technology development, demand creation, pilot projects, and charging infrastructure.

The original plan did not include a demand incentive allocation for e-buses until it was partially revised in September 2017 for ‘fully electric buses’ (CMVR category – M2 and M3). Introduced a new incentive structure.

FAME 2 Scheme

In March 2019, out of the proposed EV fund support of INR 8596 crore (through demand incentives), INR 3545 crore was allocated to the e-bus segment. A maximum of 7,090 buses is planned to be supported through the second phase of the scheme.

State EV Policies on Electric Buses

Here is the list of States and their EV Policies For Electric Bus in India

State Aim of Policy 
Initiatives and Subsidises

Andhra Pradesh

(Policy announced in 2018 and applicable up to 2023)

  • Convert 100% of APSRTC bus fleet of over 11,000 buses into e-buses (BEVs/FCEVs) by 2029
  • The first phase of 100% conversion of the bus fleet in top 4 cities by 2024
  • Reimbursement of Registration charges, Road tax & Net SGST for all private EVs until 2024

(Policy announced in 2019)

  • Deploy a pilot fleet of 3000 e-buses by 2020
  • Up-gradation of 6000 plus existing buses to e-buses by 2025
    • Provide battery swapping system at bus depots to cater trip lengths up to 35 km


(Policy announced in 2017  and applicable up to 2022)


  • To attain 100% e-mobility by 2030, school buses in Bengaluru city shall be encouraged to move towards EV
  • Launch of 1000 new e-buses during the policy period
  • Exemption from the payment of taxes on all EVs


(Policy announced in 2020 and applicable for 3 years)


  • Induction of 1000 e-buses by 2020
  • Pure e-buses to constitute at least 50% of all new public transport vehicles with 15 seats or
    more procured for the city fleet including for
    last-mile connectivity.
  • Road tax and registration fees to be waived for all BEVs during the 3 year period of this policy


(Policy announced in 2018 and applicable up to 2023)


  • User subsidy of 10% on base fare will be available for the first 1,000 private/ public passenger buses with a maximum limit of Rs. 2000000 per vehicle (first 5 years)
  • Road tax & registration fees – 100% exemption

Tamil Nadu

(Policy announced in 2019 and applicable up to 2029)


  • State Transport Undertaking (STU) operates 21000 public transport buses. Around 5% of buses shall be replaced as EV every year and around 1000 EV buses shall be introduced every year and Gradual transition of institutional buses to Evs

Uttar Pradesh

(Policy announced in 2019 and applicable up to 2024)


  • To launch 1000 electric buses (BEVs/FCEVs) and achieve 70% EV public transportation on identified green routes in identified 10 EV cities by 2030.
  • 10 cities including Noida, Ghazia- bad, Meerut, Mathura, Agra, Kan- Pur, Lucknow, Allahabad, Gorakhpur, and Varanasi will be declared as model cities in the first phase to adopt EVs,

Madhya Pradesh

(Policy announced in 2019 and applicable up to 2024)


  • Replace 50% of fleets under city Public transport Special Purpose Vehicle (SPVs) with e-buses by 2026.
  • The first 1500 electric buses or total electric buses in 5 years, whichever is less, will be charged 1% motor vehicle tax.
  • Vehicle registration fees will be exempted for 2250 electric buses or total electric buses in 5 years, whichever is less.
  •  If a permit requires for operations of E-Buses, then the first 1500 E-Buses or total e-buses in 5 years, whichever is less, will be exempted by the transport department.

(Policy announced in 2020)


  • 100% electric buses by 2030 (for intra-city, intercity, and interstate transport in a phased manner;
  •  Phase 1 -25% by 2022, Phase 2-50% by 2025, Phase 3-100% by 2030
  • Airport flight shuttles and PUSHPAK buses to be transitioned to EV on priority
  • 100% exemption from road tax and registration fee for first 500 e-bus- es.


(In draft stage)


  • Replace 25% of the existing bus fleet with e- buses within 5 years from the date of policy notification.
  • 100% waiver on Permit Fee & Motor Vehicle Tax for private bus operators plying on selected routes for a period of 5 years and 10 years if such bus is manufactured in Punjab


(In draft stage)


  • End-user incentive – 15% subsidy on base price with an upper limit of Rupees 20,00,000 (for first 1000 e-buses or Policy period of 5 years, whichever is earlier)
  • Road tax & registration fees -100% exemption.


  • First 100,000 buyers of EVs to be exempted from motor vehicles tax for five years
  • EV investors will have a 100% electricity duty exemption

Source- JMK Research 

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