The Tamil Nadu government has allocated ₹13,561 crore to the transport department in its revised 2026-27 Budget, reinforcing its commitment to modernizing public transportation and accelerating electric mobility across the state.
A major highlight of the budget is the announcement of 1,000 new air-conditioned electric buses for urban transport. These buses will be deployed under the Gross Cost Contract (GCC) model, aimed at improving passenger comfort while expanding the state’s zero-emission public transport network.
Major Push for Electric Bus Infrastructure
To support the deployment of the new electric bus fleet, the government has earmarked ₹500 crore for strengthening EV infrastructure. The investment will primarily focus on:
- Upgrading charging facilities at bus depots
- Enhancing supporting electrical infrastructure
- Ensuring efficient fleet operations and maintenance
- Preparing depots for future electric bus expansion
The infrastructure upgrade is expected to improve operational efficiency while enabling the seamless induction of the additional electric buses.
Existing Electric Bus Fleet
The Metropolitan Transport Corporation (MTC) has already made significant progress in electrifying its fleet.
Current MTC Fleet Highlights
- Total buses operated: 3,858
- Electric buses in operation: 625
- Air-conditioned electric buses: 225
- Additional AC electric buses announced: 1,000
The expansion will substantially increase Chennai’s electric public transport capacity and improve the commuting experience for passengers.
Financial Support for State Transport Undertakings
Apart from investments in electric mobility, the budget also provides significant financial assistance to state-run transport corporations to strengthen their operations.
Key Budget Allocations
- ₹13,561 crore – Total allocation for the Transport Department
- ₹7,675 crore – Subsidy for State Transport Undertakings (STUs)
- ₹2,650 crore – Viability Gap Funding
- ₹1,005 crore – Equity Capital Assistance
- ₹500 crore – EV charging and depot infrastructure
Strengthening Sustainable Public Transport
The revised budget reflects Tamil Nadu’s long-term strategy of promoting cleaner and more sustainable public transportation. By combining fleet expansion with investments in charging infrastructure and financial support for transport corporations, the state aims to improve service reliability, reduce emissions, and accelerate the transition toward electric mobility while meeting the growing demand for efficient urban transport.
