No privatisation of APSRTC, e-buses won’t transfer assets to private firms: government

The government on Thursday (July 9, 2026) dismissed reports of the privatisation of Andhra Pradesh State Road Transport Corporation (APSRTC) as false. The induction of electric buses under the Centre’s PM e-Bus Sewa Scheme did not involve the transfer of APSRTC assets or services to private entities, it said.

Addressing the media, Special Chief Secretary (Transport) M.T. Krishna Babu said 750 electric buses would be introduced in APSRTC across 11 cities under the centrally sponsored scheme.

Convergence Energy Services Limited (CESL) was conducting common tenders for participating States under the Gross Cost Contract (GCC) model, under which the contractor supplies, operates and maintains the buses, including providing drivers.

He said this arrangement applied only to buses procured under the Central scheme. The Union government would provide an incentive of ₹24 a km, enabling APSRTC to receive about ₹1,774 crore in financial support.

For electric buses procured independently by the State, the government was considering the Dry Lease model, under which APSRTC drivers and staff would operate and maintain the buses, he said.

Mr. Krishna Babu said no APSRTC employee would lose his or her job, and reiterated that APSRTC assets were neither being sold nor leased. He said temporary staff relocations at some depots were only to facilitate works for electric bus operations.

The Special Chief Secretary said the State contributes around ₹450 crore towards employee salaries and provides nearly ₹250 crore every month for welfare schemes and other support. He added that the government also plans to introduce electric buses for Palle Velugu rural services, and asked the public not to believe misinformation about APSRTC’s privatisation.