Karnataka transport minister urges Centre to provide direct subsidy to states for electric buses

Reddy said the procurement and operation of electric buses was much smoother during the UPA regime.
Transport Minister B Ramalinga Reddy at the inauguration of an automated driving test track at Pajir near Mangaluru on Sunday.
Transport Minister B Ramalinga Reddy at the inauguration of an automated driving test track at Pajir near Mangaluru on Sunday.Photo | Express
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MANGALURU: Karnataka Transport Minister B. Ramalinga Reddy has called on the central government to directly provide subsidies to state governments for procuring electric buses under the PM e-Bus Sewa Scheme, instead of routing them to private operators through the Public-Private Partnership (PPP) model.

Speaking at the inauguration of the automated driving test track at Pajir near Mangaluru on Sunday, Reddy said the procurement and operation of electric buses was much smoother during the UPA regime. “At that time, electric buses cost around Rs 20 lakh. The central government provided 50% of the funding, while the state government and transport corporations each contributed 25%. This model worked efficiently for state-run services like BMTC, NWKRTC, and NEKRTC,” he said.

Under the current NDA government, however, Reddy pointed out that subsidies are granted directly to private companies through a bidding process. “These private operators own the buses, hire drivers, and manage maintenance, while state corporations only provide conductors and pay the operator on a per-kilometre basis,” he added.

He urged the Centre to revert to a model where subsidies go directly to state transport corporations. “This would ensure better accountability, especially when drivers are employed directly by the state,” he said.

Reddy also highlighted the steep rise in electric bus costs—now around Rs 2 crore—and appealed to the Centre to offer GST input credits to manufacturers. “This will bring down manufacturing costs, making buses more affordable for states and beneficial for passengers,” he said.

He further recommended that operators be allowed to charge electric buses at any facility, not just at government-run charging stations. “Private stations offer power at Rs 3–Rs 4 per unit, compared to Rs 8 at government facilities,” Reddy noted.

Reddy said he has discussed the issue with Union Minister for Heavy Industries H.D. Kumaraswamy and urged Dakshina Kannada MP Capt. Brijesh Chowta to take the matter up with central authorities.

The minister also appealed to local representatives in Mangaluru to allocate land for a bus terminal and depot to facilitate the rollout of electric buses. Under the PM e-Bus Sewa Scheme, seven cities in Karnataka, including Mangaluru, will each receive 50 electric buses.

42 Automated Driving Test Tracks by Year-End

Reddy announced that automated driving test tracks are already operational in eight locations across Karnataka—Dharwad, Koppal, Chintamani, Sirsi, Dandeli, Bhalki, and now Mangaluru. “By the end of the year, 42 such facilities will be functional across the state,” he added.

MP Capt. Brijesh Chowta emphasised the need for a robust and integrated public transportation system in the Mangaluru region and called for improved inter-state connectivity, especially more buses between Mangaluru and Kasaragod.

Speaker of the Legislative Assembly and local MLA UT Khader expressed satisfaction at the launch of the test facility, noting it would support local economic growth and generate indirect employment.

New Driving Test Track to Be Operational in Ten Days time

Regional Transport Officer Shridhar K. Mallad announced that the new automated driving test track at Pajir will become operational within 10 days. “The existing facility at Vamanjoor will be relocated to Pajir on July 16,” he said.

During the transition, driving tests at the new site will be conducted manually for about a week while the system is linked to the National Informatics Centre (NIC) server. Once integrated, applicants will need to book test slots online for automated driving assessments.

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