CESL launches tender worth INR 5,500 cr for 5,580 electric buses under Grand Challenge
CESL intends to deploy 5,450 single decker buses and 130 double decker buses across Bangalore, Delhi, Surat, Hyderabad, and Kolkata as part of the first phase of the “Grand Challenge”
A tender worth Rs 5,500 crore was released on Thursday by the state-run Convergence Energy Services Ltd (CESL) for the supply of 5,580 electric buses, including 130 double-deckers.
CESl, a wholly-owned subsidiary of Energy Efficiency Services Limited (EESL), announced Tuesday it had floated an RFP for the largest ever demand for electric buses, as part of the Grand Challenge, which aggregates electric bus demands from five major cities.
CESL intends to deploy 5,450 single decker buses and 130 double decker buses with this ‘Grand Challenge”. The tender is estimated to be worth Rs 5,500 crore. Bangalore, Delhi, Surat, Hyderabad, and Kolkata are part of the first phase of the “Grand Challenge”. It is expected that the first batch of electric buses will be on the roads by July this year, the statement added.
“STUs, OEMs, financiers, Niti Aayog, DHI, and of course my colleagues contributed to this. It is the biggest scheme in the world ever and is based on an asset-light model that makes it possible to deploy at scale affordably,” Mahua Acharya, MD & CEO, CESL, said.
The CESL plans to provide greater support to states in achieving their electric mobility targets as well as to build an infrastructure for electric mobility throughout the country.
NITI Aayog CEO Amitabh Kant said, “Standardizing tendering conditions in diverse cities is an important step towards the transformation of public transport in India. The participation in the Grand Challenge is commendable on the part of the STUs, who will also benefit from economies of scale through CESL’s aggregate demand.”
Prime Minister Narendra Modi pledged to make India a Net Zero nation by 2050 and to achieve Energy Independence by 2047, and this move is seen as a big step in that direction, the statement said.
“I am happy to inform you that Delhi has requested 1,500 buses under the Grand Challenge and stands ready to offer subsidies as needed. We are pursuing electric mobility aggressively, and I commend CESL for its efforts to standardize the conditions under which they are offered,” Kailash Gahlot, Delhi’s Transport and Environment Minister, said.
Participants in the Grand Challenge benefit from lower prices due to aggregate demand, high-quality benchmarked technology, FAME-II incentives, state incentives, better air quality, and access to domestic and international financing.
Aware of the changing environment, where climate change issues and the drive for energy independence have led to a greater interest in EVs, CESL will later expand support to more cities.
Source: PTI
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