Unveiling the Union Budget 2026 on Sunday, Finance Minister Nirmala Sitharaman shared the centre’s plan to push an additional 4,000 electric buses. The plan is to strengthen urban public transport and promote clean mobility.

The Union Minister said the aim is to expand electric public transport fleets in cities, reduce dependence on fossil fuels and lower urban carbon emissions. The announcement aligns with the government’s broader infrastructure and sustainability priorities outlined in the budget.

The plan will be implemented in different phases across identified urban centres. The central focus remains on improving last-mile connectivity and easing congestion. The initiative supports India’s long-term goals for energy transition, climate commitments, and reducing reliance on public transport.

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Cleaner and Sustainable Urban Commute

The electric bus deployment is part of a broader policy push to accelerate the adoption of electric vehicles in public mobility. By prioritising buses, the government aims to achieve scale-led emissions reductions. The plan will also simultaneously offer affordable transport options to daily commuters nationwide.

The programme is also expected to generate demand for domestic electric-vehicle manufacturing, charging infrastructure, and allied services, thereby contributing to job creation across the mobility value chain.

The Union Budget signals continued capital support for urban transport projects. The electric bus rollout is expected to be implemented in coordination with state governments and urban local bodies.

Timely execution, adequate charging infrastructure and operational funding will be important to ensure the long-term viability of electric bus fleets.