Yogi Government Approves 1,725 AC Electric Buses Across 18 Cities Under Gross Cost Contract Model

By Akanksha Mishra 2026-10-09 18:59:05

In a massive leap toward modernizing urban public transport and curbing carbon emissions, the Uttar Pradesh government under the leadership of Chief Minister Yogi Adityanath has approved a comprehensive proposal to deploy 1,725 air-conditioned electric buses across 18 major cities. The decision was officially cleared during a high-level cabinet meeting held in Lucknow on Friday, October 9, 2026.

Expanding Green Mobility Across 18 Cities

The ambitious electric bus expansion plan covers a wide network of municipal corporations and developing urban centers, ensuring seamless and eco-friendly connectivity:

Target Cities: The newly approved fleet will operate in Lucknow, Kanpur, Varanasi, Prayagraj, Ayodhya, Gorakhpur, Agra, Aligarh, Bareilly, Firozabad, Ghaziabad, Jhansi, Mathura-Vrindavan, Meerut, Moradabad, Shahjahanpur, Saharanpur, and Noida (including Jewar).
Building on Existing Infrastructure: Currently, 743 electric buses are operational across 15 municipal corporations in the state, with 700 functioning under a Gross Cost Contract model. This new initiative significantly scales up the urban transit framework.

The Gross Cost Contract (GCC) Model and Financial Subsidies

To ensure operational efficiency and private sector participation, the state government has adopted the Gross Cost Contract (GCC) framework for a contract duration of 12 years:

Division of Responsibilities: Under this model, private operators will be responsible for purchasing the buses, procuring charging equipment, deploying technical staff and drivers, and handling day-to-day maintenance. Meanwhile, passenger fares will be regulated directly by the state government.
Substantial Capital Grants: To incentivize private operators, the government will provide lucrative capital subsidies: ₹4 million (₹40 lakh) for each 12-meter-long electric bus and ₹3.5 million (₹35 lakh) for each 9-meter-long bus. Operators will receive operating and maintenance fees based on strict, predetermined performance benchmarks.
Free Depot Infrastructure: To support fleet management, respective municipal corporations and development authorities (including Noida) will provide land free of cost for constructing dedicated charging and parking depots.