Himachal government to provide a 50% subsidy on electric buses; 30% subsidy on diesel buses

June 29, 2026

Chief Minister Sukhvinder Singh Sukhu announced that the state government is launching the Rajiv Gandhi Self-Employment Start-up Scheme (Phase-4) with the aim of creating self-employment opportunities for unemployed youth, strengthening the public transport system, and promoting eco-friendly transport. Under the scheme, eligible beneficiaries will receive a capital subsidy of 50 percent for the purchase of electric buses and 30 percent for diesel buses. Additionally, buses will be operated on 1,000 identified routes across the state.

The Chief Minister stated that beneficiaries under the scheme will also receive an operational incentive of ₹65,000 per month for electric buses and ₹50,000 per month for diesel buses for a period of five years. The scheme will be implemented across Himachal Pradesh, with at least 10 routes identified in each sub-division. Electric and diesel passenger buses with a minimum capacity of 32 seats will be eligible under the scheme.

The scheme will be implemented by the Department of Labour, Employment and Overseas Employment in collaboration with the Transport Department and the district administration. Operating buses on the identified sub-divisional routes will facilitate easier access for people to educational institutions, healthcare services, government offices, industrial areas, tourist destinations, and remote panchayats. This will strengthen the public transport system in rural areas and boost local economic activities.

To apply for the scheme, the applicant must be a permanent resident of Himachal Pradesh and aged between 25 and 50 years. Possession of a valid heavy driving license and at least three years of experience is mandatory. The beneficiary will operate the bus themselves.

The state government believes that this initiative will generate large-scale self-employment opportunities for the youth, further strengthen the public transport system in rural areas, provide fresh impetus to tourism and local economic activities, and accelerate the adoption of clean and green transport technologies.

The Chief Minister stated that the increased subsidy on electric buses reflects the state government’s commitment to green transport, the reduction of carbon emissions, and a clean environment. He expressed confidence that this scheme would not only provide sustainable livelihoods for the youth but also give new momentum to an eco-friendly public transport system in the state.