India: CESL opens tender for 100,000 light electric vehicles

India´s state-run Convergence Energy Services Limited (CESL) is calling bids to procure 100,000 electric two- and three-wheelers. The tender is part of what may indeed be “the largest such global tender” as CESL’s head organisation EESL aims to have half a million light electric vehicles across India.

The state-owned utility Energy Efficiency Services Ltd (EESL) owns CESL and has charged the subsidiary to push for electric vehicles following the Indian government allotting the demand aggregation of electric three-wheeler and electric bus components to EESL as part of the ‘Faster Adoption and Manufacturing of Hybrid and Electric Vehicles’ (Fame) scheme.

The Ministry of Heavy Industries had contracted EESL already in June this year to procure 300,000 electric three-wheelers for use in various government agencies when extending the FAME II scheme. FAME 2 was originally scheduled to run until the end of 2022 and has been extended until 31 May 2024. FAME 2 provides for subsidies with a total value of the equivalent of $1.4 billion.

For the now announced tender of 100,000 electric trikes and two-wheelers, CESL is not disclosing many details. Costs are, however, estimated at Rs3000 crore. The company also states it has issued a request for proposals “inviting original equipment manufacturers to provide quotations for E3W under different use-cases – including, garbage disposal, freight loaders, food and vaccine transport and passenger autos.”

CESL further expects OEMs to include “designing, engineering, manufacturing, testing, inspection, supply, transportation, complete system warranty & transit insurance, delivery to the end-consumer and providing after-sales support” in their bid, the statement said.

In addition to supplying electric two-wheelers to states such as Andhra Pradesh, Kerala and Goa, CESL has also been leasing and operating three-wheeled EVs for the garbage collection fleet of municipalities across the country, including for Pune Municipal Corporation.

“With this level of demand witnessed from cities, fleet operators, and financing entities, it is clear that the market is ready for electric vehicles. Therefore, we expect to develop a significant leasing business and are already in touch with third party investors,” CESL managing director and chief executive officer Mahua Acharya told Mint.

So far, Kinetic Green Energy and Power Solutions and Mahindra Electric Mobility are reported to have shown interest in making a bid to supply electric three-wheelers as part of CESL’s scheme. CESL was also discussing with Swachh Andhra for an additional 15,000 garbage tippers for Andhra Pradesh, Mint reported.

livemint.com, eqmagpro.com (tender)