Olectra, JBM Auto shares jump as govt plans 10,000 e-buses

Shares of Olectra Greentech and JBM Auto surged sharply on Monday after the government confirmed a major push for electric public transport under the PM eBus Sewa Scheme.

The announcement, made in the Rajya Sabha, outlined the deployment of 10,000 air-conditioned e-buses across 116 cities by the end of 2027, boosting sentiment across the electric mobility and commercial vehicle sectors.

PM eBus Sewa Scheme Drives Market Momentum

Following the announcement, shares of Olectra Greentech jumped up to 7.5%, while JBM Auto gained nearly 10%. Ashok Leyland also rose 1.3%, reflecting broader optimism in the commercial vehicle space.

The government stated that the current phase of the PM eBus Sewa Scheme will cover 116 cities across 26 states and Union Territories. The initiative targets urban centres with populations between 3 lakh and 40 lakh, focusing on improving mobility in tier-2 and tier-3 cities while addressing rising pollution.

Union Minister Manohar Lal said the scheme was first announced by Prime Minister Narendra Modi in August 2023 to strengthen public transport systems in smaller cities.

10,000 Buses by 2027, 35,000 More Planned

The government confirmed that the first tranche of 10,000 e-buses will be completed by the end of 2027. So far, 225 buses have already been delivered, while agreements for 6,500 buses have been finalised.

Looking ahead, a second phase is being planned to roll out an additional 35,000 e-buses. The upcoming scheme will expand coverage and include improvements based on learnings from the current phase.

The rollout is being implemented under a public-private partnership model, supported by a payment security mechanism to encourage participation from states and private operators.

State Participation and Bihar Delay

Out of 178 eligible cities, 116 participated in the scheme and were allotted buses based on recommendations from coordination committees.

In Bihar, six cities including Patna, Bhagalpur, Darbhanga, Gaya, Muzaffarpur, and Purnea have been sanctioned a total of 400 e-buses. However, implementation in the state has been delayed due to the absence of coordination committees.

The government has also sanctioned ₹112.46 crore for infrastructure development in Bihar, including power systems and depot facilities.

Focus on Urban Mobility and Clean Transport

The scheme is expected to improve travel experience, reduce pollution, and lower commuting costs. Authorities are also planning to introduce a national common mobility card and Sahaj ticketing system, allowing seamless travel across different modes of transport, including e-buses.

Officials noted that while urban transport is a state subject, central schemes like PM eBus Sewa aim to accelerate clean mobility adoption across cities.