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Business News/ Companies / News/  CESL floats tender for 4,675 e-buses worth 5,000 crore
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CESL floats tender for 4,675 e-buses worth ₹5,000 crore

Aiming to accelerate adoption of electric vehicles and cut down fuel imports, carbon emissions and air pollution, state transport utilities in Delhi, Kerala and Telangana will deploy the e-buses on the basis of a dry lease

CESL floats tender for 4,675 e-buses worth ₹5,000 crore. (File Photo: Bloomberg)Premium
CESL floats tender for 4,675 e-buses worth 5,000 crore. (File Photo: Bloomberg)

NEW DELHI: State-owned Convergence Energy Services Ltd., a wholly-owned subsidiary of Energy Efficiency Services Ltd (EESL), on Thursday said it has floated a tender for 4,675 electric buses worth 5,000 crore. This is the second tender under the National Electric Bus Programme (NEBP), a company statement said.

Also, this is the third tender for electric buses following the ‘Grand Challenge’ tender of 5,450 e-buses, and a recently concluded tender for 6,465 e-buses.

Three states--Delhi, Kerala and Telangana--are covered in this tender, and will deploy 2,400, 775 and 1,500 electric buses, respectively. Aiming to accelerate adoption of electric vehicles (EVs) and cut down fuel imports, carbon emissions and air pollution, STUs (state transport utilities) in Delhi, Kerala and Telangana will deploy the e-buses on the basis of a dry lease.

In a dry lease, the operator provides the buses to state transport corporations (STCs) without drivers or conductors, which are deployed by STCs.

A dry lease model has been enabled in NEBP to maintain employment in STCs that have such need. The tender includes three types of electric buses: 9-m standard floor AC, and 12-m low floor and standard floor non-AC, and AC electric buses. These buses will be owned and maintained by service providers for a period of 10 and 12 years, while being operated by the STCs.

Service providers will be paid a monthly fee per bus. Charging infrastructure at depots are to be provided by both parties in clearly demarcated roles and responsibilities, as constructed and standardized in the 2022 Grand Challenge process.

“This tender is valued at an estimated 5,000 crore and primarily involves the cost of the bus. Bidders and STCs alike are mandated and encouraged to employ women and create opportunities for a safe environment for them to work," the company said.

The deployment of 4,675 e-buses will lead to fuel savings of 15 lakh kilolitre/year and significant reduction in air pollution.

“I am thrilled to be launching yet another tender under the National Electric Bus Program. This just speaks of the leadership of states to transition over to electric. This tender was also uniquely designed in consultation with the participating states of Delhi, Telangana and Kerala, to whom I remain grateful for their collaboration," said Mahua Acharya, CEO and managing director, CESL.

“India’s National eBus program has emerged as an international case study. For us domestically, this program demonstrates the commitment of the Prime Minister to mitigate climate change, reduces fuel bills and address air pollution. The economic value of a 50,000 eBus program is huge – and I look forward to seeing the market realize this value," she added.

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Published: 05 Jan 2023, 03:52 PM IST
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