CESL Issues New Tender for 4675 Electric Buses for Rs 5000 Crore

Convergence Energy Services Limited (CESL) has announced a second tender for the deployment of electric buses under the National Electric Bus Programme. The number of e-buses sought by CESL in the novel tender is 4,675.

CESL has recently concluded a tender for 6,465 electric buses. Previously it had also issued a tender under Grand Challenge for 5,450 buses. In less than a 15 month time, CESL has come up with a third tender. Cumulatively, it covers a volume of 16,590 buses countrywide and the figure also marks about one-third of the target given to CESL.

Under the new tender, CESL is allowing the State Transport Undertakings (STUs) to deploy their own drivers of buses on a dry lease contract. CESL said that the three states of Delhi, Kerala and Telangana can deploy 2400, 775 and 1500 electric buses respectively.

CESL said, “The tender is valued at an estimated Rs 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 safer environment for them to work.”

The objective of CESL, a subsidiary of Energy Efficiency Services Limited (EESL), is to enable battery powered electric mobility and its infrastructure and design business models to increase the uptake of electric vehicles in India.

Under dry lease, the selected operators deploy their electric buses with state transport corporations but without drivers and conductors. The objective of this clause is to enable the STCs to maintain employment for their manpower who need it.

The CESL tender calls for three kinds of electric buses: 9-metre standard floor AC, 12-meter low floor and standard floor non-AC & AC buses. The e-buses will be operated by transport corporations but the operators will have to own and maintain the buses for 10 and 12 years.

CESL said that the bus operators will earn a monthly fee on a per bus basis. With regards to the charging of the electric buses, both operators and STCs will have to bear roles and responsibilities in accordance with the roles and responsibilities demarcated in the 2022 Grand Challenge.