India, April 1 -- In a move to cater to more cities, the government is reportedly considering reducing the per unit subsidy for electric buses under the PM E-Drive scheme without raising the budgetary allocation.

Cities such as Hyderabad, Surat, Bengaluru and Pune have together raised a subsidy demand for more than 15,000 units, an ET report said, citing officials familiar with the matter.

"The newly formed Delhi government is expected to raise a significant demand for e-buses. Orders from Ahmedabad, Mumbai, Chennai and Kolkata are awaited as well," an official was quoted as saying in the report.

The report further said that currently the Centre offers a subsidy of INR 20-35 Lakh per electric bus, depending on the carrying capacity and...