Madhya Pradesh has introduced the Electric Vehicle Policy 2025, aiming to promote the operation of electric vehicles across the state. The state government has made provisions to provide exemptions in transport tax and subsidies to encourage the use of electric vehicles. As part of the initiative, electric bus services are being promoted in major cities. Currently, 80 electric buses are operating on urban routes in Indore, with 40 buses being operated under the FAME scheme and another 40 under the AMRUT scheme 1.0.
A proposal has been approved by the Central Urban Ministry, New Delhi, to operate 582 electric buses across six cities. These buses will be deployed in Indore (150 buses), Bhopal (100 buses), Gwalior (100 buses), Jabalpur (100 buses), Sagar (32 buses), and Ujjain (100 buses). The Urban Development and Housing Department has issued tenders for bus operators in these cities, with the bus depot infrastructure being developed under the PM E-Bus Service scheme.
The central government will provide 60 percent of the funding for the depot infrastructure, while the state government will contribute the remaining 40 percent. For the construction of charging infrastructure for electric buses, the central government will cover 100 percent of the costs.