UP notifies new incentive model to roll out 1,725 AC electric buses in 18 cities

TNN

Lucknow: Residents of 18 cities in Uttar Pradesh are set to get improved city bus services as the state govt has amended its framework to attract private operators for running electric bus fleets.

Seventeen municipal corporation cities will be covered, with Jewar added as the 18th city where city bus services will be deployed.

The directorate of urban transport, the state agency tasked with managing city bus operations, has struggled for the past year and a half to find private partners willing to procure and operate electric buses under the earlier model. Officials said the previous revenue-sharing arrangement drew a poor response, with bidders citing weak financial viability.

Under the revised plan, a total of 1,725 air-conditioned electric buses will be introduced in phases across the 18 cities. Larger allocations are planned for cities with higher commuter demand, including Lucknow, Ghaziabad, Kanpur, Agra, Meerut and Bareilly, while smaller fleets will be assigned to Shahjahanpur, Firozabad, Saharanpur and Jhansi.

Jewar’s inclusion is linked to connectivity needs around the upcoming international airport. Officials said regular shuttle services between the airport and key nodes such as Pari Chowk in Greater Noida and the DND corridor are considered crucial for passenger movement.

To improve participation, the state will provide upfront incentives to private operators — Rs 35 lakh for each 9-metre bus and Rs 40 lakh for each 12-metre bus — alongside a revenue-sharing mechanism. In exchange, private players will be responsible for developing and managing supporting infrastructure, including charging stations, bus depots or service centres, and staffing.

Local municipal corporations and development authorities will provide land for the required infrastructure without charging the operators, officials said.

The govt expects the revised terms to bring multiple operators to the table. A special purpose vehicle will be constituted to oversee operations of the city bus services across the 18 cities.