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This paper proposes a novel method to find an effective solution for reducing the effect of environmental pollution through an efficient eco-friendly mode of public transport system. In the proposed topology a combination of dual battery powered plug-in hybrid electric vehicle (PHEV), optimizes the utilization of energy sources depending upon the vehicle riding conditions. Deep cycle NiMH battery power for steady speed driving conditions and starter lead acid battery for vehicle starting is used to significantly reduce the cost of installation as well as operation of a PHEV bus. Using series hybrid powertrain, the dependency on gasoline is minimized and hence will reduce the pollution rates drastically. Fast charging technique takes it less time than a conventional PHEV taking long hours of charging. Swappable batteries with dedicated swapping stations provide proper maintenance of battery, thus improving the battery parameters required for operating a public transport system which would be a present-day cost efficient alternative to the modern hybrid buses.