HomeLatestKarnataka Transport Minister Seeks Direct EV Bus Subsidy From Centre For States

Karnataka Transport Minister Seeks Direct EV Bus Subsidy From Centre For States

Mangaluru is emerging as a focal point for sustainable public transport advocacy, as Karnataka intensifies its pitch to the central government for direct electric bus subsidies to state transport bodies. At a recent public infrastructure event in the city, senior officials urged the Centre to channel electric mobility incentives directly to state-run agencies rather than private aggregators, citing operational transparency and public accountability.

According to state transport authorities, the earlier model of Centre-State cost sharing—where the central government bore 50% of electric bus procurement costs, and the remaining 50% was split between state governments and transport corporations—had ensured smoother deployments during the previous regime. Today, under the current Public-Private Partnership framework, electric buses are owned and operated by private firms, with state corporations offering limited logistical support such as conductors. Senior officials argue this model raises concerns over long-term service quality and affordability, especially since private firms typically charge states on a per-kilometre basis while maintaining control over buses, drivers, and operations. With procurement costs for electric buses now touching ₹2 crore per unit, the need for central intervention is seen as urgent. Officials further requested GST input credits for electric vehicle manufacturers to reduce overall costs and encourage wider adoption.

The city administration also called on the Centre to allow flexible charging options, enabling operators to use both private and government-run charging stations. Authorities highlighted the stark price difference, with private facilities offering charging at Rs 3–4 per unit compared to Rs 8 at government stations. Parallel to the subsidy plea, Karnataka is aggressively ramping up transport testing infrastructure. The city of Mangaluru recently witnessed the inauguration of an automated driving test track in Pajir village. The new facility is expected to become fully operational by July 16, replacing the existing manual test system at Vamanjoor. This is part of the state’s larger target to commission 42 automated tracks by the end of 2025—making it the state with the highest number of such facilities in India.

Local governance bodies have been asked to expedite land allocation for electric bus depots and terminals to support the deployment of 50 electric buses under the PM e-Bus Sewa scheme in Mangaluru alone. Officials stated that seven cities across Karnataka have been shortlisted for receiving a total of 350 electric buses under this scheme. While the transport ecosystem continues to evolve, urban policy experts have welcomed Karnataka’s push for more inclusive and state-centric reforms. They note that routing funds directly to public transport agencies ensures greater sustainability and public benefit, especially in second-tier cities like Mangaluru, which are witnessing increased urbanisation and mobility demands.

Also Read : Tiruchi To Divert Heavy Vehicles To Panjapur Terminal To Ease Traffic Flow

Karnataka Transport Minister Seeks Direct EV Bus Subsidy From Centre For States
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