By AUTOASTRA Editorial · 20 Oct 2026 · Policy
Uttar Pradesh has approved 1,725 air-conditioned electric buses across 18 cities under a 12-year contract model, with Lucknow and Kanpur getting 300 each.
Uttar Pradesh has approved 1,725 air-conditioned electric buses across 18 cities, under a 12-year Gross Cost Contract model, according to the commercial vehicle weekly wrap published by CMV360. Lucknow and Kanpur will each receive 300 buses, with the rest distributed across the other cities in the programme.
The state is sweetening the deal for operators. Subsidies of ₹35 lakh per 9-metre bus and ₹40 lakh per 12-metre bus are on offer, along with free depot land. Under the Gross Cost Contract model, the government pays the operator a fixed rate per kilometre to run and maintain buses that the state owns, which shifts the technology and operational risk to a specialist contractor.
| Item | Detail |
|---|---|
| Total buses approved | 1,725 air-conditioned electric buses |
| Cities covered | 18 |
| Lucknow | 300 buses |
| Kanpur | 300 buses |
| Subsidy per bus | ₹35 lakh (9-metre) and ₹40 lakh (12-metre) |
| Additional support | Free depot land |
The order lands in a busy month for electric buses in India. GreenCell Mobility raised ₹330 crore to expand its electric bus fleet, and Volvo Buses India booked its largest-ever single order for 200 coaches from MSRTC. State transport undertakings are moving on electric buses partly because of central funding and partly because running costs on fixed urban routes suit battery-electric vehicles well.
Electric buses also carry a strong emissions case in dense city corridors, where a single bus can replace dozens of private trips. But the model lives or dies on execution: charging infrastructure, depot readiness and the contractor's maintenance record decide whether the buses actually stay on the road. With a 12-year contract, the operator has a long runway to recover its investment — and a long time to get it right or wrong.
For commuters in Lucknow, Kanpur and the 16 other cities, the payoff is cleaner, quieter buses and, if the fleet is run well, more reliable service. The bigger test is operational: electric buses live or die on dependable charging and maintenance, so the contractor's track record will matter more than the headline number. The programme also supports local bus manufacturing, which keeps the supply chain and jobs closer to home. Watch how state transport orders progress on our news page, and run the electric-versus-diesel maths with our EV calculator.
(Sources: CMV360 weekly wrap, 12 to 17 October 2026; Uttar Pradesh government announcement. Images: Wikimedia Commons, CC BY-SA 4.0.)
::KEY_NUMBERS:: Buses approved | 1,725 Cities covered | 18 Lucknow and Kanpur | 300 each Contract period | 12 years ::TLDR:: UP clears 1,725 AC electric buses for 18 cities Lucknow and Kanpur get 300 each Subsidy of ₹35 lakh for 9-metre and ₹40 lakh for 12-metre buses Free depot land offered to operators ::CHART:: type: bar title: UP e-bus order by city (units) labels: Lucknow,Kanpur,Other 16 cities values: 300,300,1125 source: CMV360, October 2026 ::TIMELINE:: 2024 | PM E-DRIVE scheme expands e-bus funding October 2026 | UP approves 1,725 e-buses under a gross cost contract Deliveries | to be phased over the contract term ::GLOSSARY:: Gross Cost Contract | a model where the government pays an operator per kilometre to run and maintain buses it owns PM E-DRIVE | a central scheme that funds electric buses, three-wheelers and charging infrastructure ::PULLQUOTE:: Electric buses are the quiet workhorses of the EV story — the ones that move the most people with the least fuss. ::PROS:: Cuts tailpipe emissions in dense city corridors Free depot land lowers the entry barrier for operators Large order supports local bus manufacturing ::CONS:: Depends on reliable charging and grid capacity Operational success hinges on the contractor Benefits reach only the 18 selected cities ::POLL:: Are electric buses the most effective EV push for India? || Yes, they cut urban pollution fastest || No, focus on private cars and two-wheelers || Both need equal attention ::SOURCES:: CMV360 weekly wrap, Uttar Pradesh governmentMore on AUTOASTRA: All Articles · News · Reviews · Fuel Prices · Home