UP Cabinet Approves 1,725 AC Electric Buses Across 18 Major Cities

State introduces Gross Cost Contract model with 12-year operational terms to expand urban transit

by The_unmuteenglish

Lucknow, Oct 9: The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, approved a major urban transport expansion to deploy 1,725 air-conditioned electric buses across 18 key cities.

Implemented under the Gross Cost Contract framework, the policy introduces 9-meter and 12-meter electric vehicles maintained by private operators over a 12-year tenure.

State leadership confirmed that major urban centers including Lucknow, Kanpur, Varanasi, and Gorakhpur will receive dedicated allocations to streamline public commuting.

To support execution, the administration announced subsidies of ₹40 lakh for 12-meter buses and ₹35 lakh for 9-meter models, with local municipal bodies providing land for depots free of charge.

Urban Development Minister Arvind Kumar Sharma affirmed that private investment will enhance transit quality while reducing public expenditure.

State authorities declared that purchasing rules will prefer locally manufactured vehicles, creating employment opportunities across regional manufacturing hubs.

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