EESL to procure 10,000 electric vehicles from Tata Motors

Speed Post News Network

New Delhi : Energy Efficiency Services Limited (EESL), under the administration of Ministry of Power, Government of India (GoI), will procure 10,000 electric vehicles from Tata Motors Limited. The company was selected through an international competitive bidding aimed at increased participation.

Tata Motors won the tender and will now supply the Electric Vehicles (EVs) in two phases – first 500 e-cars will be supplied to EESL in November 2017 and the rest 9,500 EVs will be delivered in the second phase, according to a PIB release. The tender floated by EESL is the world’s largest single electric vehicle procurement. Three leading manufacturers – Tata Motors Limited, Mahindra & Mahindra (M&M) and Nissan participated in the tender and the bids for TATA Motors Limited and Mahindra and Mahindra (M&M) were opened.

EESL is driven by the objective of facilitating faster adoption of disruptive technology solutions while balancing economic development and environmental sustainability. With this specific initiative EESL seeks to create the market for electric vehicles, a technology which is poised to boost e-mobility in the country through its unique business model of aggregation of demand and bulk procurement. EESL is seeking to leverage the immense potential of replacement of existing vehicles in the government departments for initial demand aggregation, according to the PIB release.

Tata Motor Limited quoted the lowest price of Rs 10.16 lakh exclusive of GST in the competitive bidding. The vehicle will be provided to EESL for Rs 11.2 lakh which will be inclusive of GST and comprehensive 5 year warranty which is 25 % below the current retail price of a similar e car with 3 year warranty.

EESL’s EV programme is a comprehensive solution to facilitate adoption of the disruptive technology in the country. Along with procurement of 10,000 EVs through international competitive bidding, EESL will also identify a service provider agency. This agency, also appointed through competitive bidding, will carry out end-to-end fleet management of the procured vehicles for the government customer concerned. These cars will be used to replace the petrol and diesel cars used by Government and its agencies over a 3-4 year period. The total number of vehicles used by the Government and its agencies  is estimated to be 5 lakh.

As per the report published in May 2017 by Niti Aayog, making India’s passenger mobility shared, electric, and connected can cut its energy demand by 64% and carbon emissions by 37% in 2030.