Energy Efficiency Services Ltd (EESL) will procure 250 electric vehicles from two suppliers, selected through an international competitive bidding process.
EESL, in a release, said that it will procure 250 EVs from Tata Motors and Hyundai Motor India. The companies were selected through an international competitive bidding process, which was aimed at increased participation.
Tata Motors Ltd and Hyundai Motor India Ltd won the tender and now will supply 150 Nexon electric compact SUVs and 100 Kona electric premium SUVs respectively for government use.
The letter of award for the procurement was presented to the two companies, in the presence of Guenter Butschek, CEO & MD, Tata Motors, Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors and Tarun Garg, Director – Sales, Marketing & Service, Hyundai Motor India Ltd.
EESL has already received an order for 300 Long Range EVs from Kerala government entity, Agency for Non-Conventional Energy and Rural Technology (ANERT).
This procurement will utilize $5 million from the recent grant provided by the Asian Development Bank (ADB). EESL has received financing from ADB towards the cost of scaling up and financing high priority areas like Demand Side Energy Efficiency Sector Projects.
Procurement cost
EESL will procure Tata Nexon at Rs.14.86 lakh each, which is Rs.13,000 cheaper than its ex-showroom price of Rs.14.99 lakh. Hyundai Kona, which offers a higher range, will be procured at an 11 per cent lower price band of Rs.21.36 lakh and with a standard three-year warranty. These electric vehicles will replace the existing fleet of petrol and diesel vehicles of the Central and State Governments.
Fillip to EV sales
Saurabh Kumar, Executive Vice Chairperson, EESL said, “A shift to EVs, facilitated by our e-mobility programme will reduce dependence on oil imports and promote power capacity addition in India. This will greatly enhance the energy security of the country and will also lead to reduction in GHG emissions from the transport sector. Furthermore, we’re also working on rapid establishment of EV charging stations, which will give a fillip to the electric vehicle sales, going forward.”
With this specific initiative, EESL seeks to create the market for electric vehicles, 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, the EESL release noted.
