No privatisation of APSRTC, e-buses won’t transfer assets to private firms: government
The Andhra Pradesh government has denied rumors of privatizing the state-run transport corporation (APSRTC) following the introduction of electric buses. Officials clarified that the new e-bus scheme uses a gross cost contract model that keeps assets under state control and ensures no job losses for current employees.
Why it matters
Public transport privatization is a sensitive political issue; this clarification aims to maintain public trust and prevent labor unrest within the state transport sector.
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.
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