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

The government on Thursday, July 9, 2026, rejected reports regarding the privatization of Andhra Pradesh State Road Transport Corporation (APSRTC) as false. It was stated that the launch of electric buses under the Centre’s PM e-Bus Sewerage Scheme does not involve transfer of APSRTC assets or services to private entities.

Addressing the media, Special Chief Secretary (Transport) MT Krishna Babu said that 750 electric buses will be introduced in APSRTC in 11 cities under the centrally sponsored programme.

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

This regulation is applicable only to buses purchased under the Central scheme, he said. The Union government will provide an incentive of ₹ 24 per kilometre, which will enable APSRTC to receive financial support of around ₹ 1,774 crore.

He said that for electric buses procured independently by the government, the government is considering the Dry Lease model, where APSRTC drivers and staff will operate and maintain the buses.

Mr. Krishna Babu said that no APSRTC employee will lose his job and reiterated that APSRTC assets were neither sold nor leased. He said temporary staff relocations at some depots were made solely to facilitate work on electric bus operations.

The Special Chief Secretary said the State contributes around ₹450 crore towards employee salaries and provides around ₹250 crore every month for welfare schemes and other support. He added that the government was also planning to introduce electric buses for Palle Velugu rural services and asked the public not to believe misinformation regarding the privatization of APSRTC.