New Delhi, Nov. 11 -- India's push to electrify public transport is entering a crucial phase. State-run Convergence Energy Services Ltd (CESL) is set to open bids for 10,900 electric buses across five major cities-Delhi, Hyderabad, Ahmedabad, Surat, and Bengaluru-under the PM E-Drive scheme. Large tenders for Mumbai and Pune will follow.

While the numbers look promising, bus manufacturers have found that the gross cost contract (GCC) tender model poses concerns, as it is a capital-intensive and stringent approach. Mint unpacks the model and explains why it is a concern.India's massive e-bus tendersThe CESL tender, along with future tenders under the scheme will operate on the gross cost contract (GCC) model. State governments, which run ...