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Emission reduction and fuel economy are the primary drivers for public transport authorities. Electric propulsion is efficient, and do not produce any local emissions. However, achieving range similar to IC engine vehicles would require large battery pack, and considering this plug-in hybrid technology may be attractive options for public transport buses. Advances in battery technology and power electronics have enhanced the possibility of plug-in hybrid vehicles penetrating market in near future. Rising fuel prices and concerns over green house gases as well as other emissions have made it essential to consider such options seriously. Globally there are many efforts towards development of plug-in hybrid vehicles and Indian vehicle manufacturers have also demonstrated plug-in hybrid buses. Such vehicles can offer higher benefits in Indian congested traffic. However, it is required to evaluate the comparative environmental performance of plug-in hybrid vehicles in life-cycle analysis.