Bengaluru plans 6,500 electric buses under lease model, raising operational risk concerns

Bengaluru Metropolitan Transport Corporation (BMTC) is set to deploy over 6,500 electric buses as part of a fleet expansion to more than 10,000 vehicles, making it India's largest city bus operator. The buses are procured under 12 year Gross Cost Contract leases, where manufacturers supply charging infrastructure, maintenance and service readiness while BMTC pays per kilometre and provides conductors. BMTC currently carries 4.5 million passengers daily, far exceeding Namma Metro's one million ridership in the 15 million population city.

Why it matters: The shift from outright diesel bus purchases to long term electric bus leases transfers infrastructure and maintenance risk to suppliers, creating a major test case for the GCC model at scale. Procuring over 6,500 electric buses under performance based contracts will require robust charging networks and service guarantees, with implications for how Indian cities structure future fleet electrification tenders.