CESL Invites Bids from OEMs to get Empaneled for Supply of E-rickshaws

Convergence Energy Services Limited (CESL) has issued an expression of interest (EoI) to empanel original equipment manufacturers (OEMs) to supply electric three-wheelers (e-rickshaws) in India. While the pre bid meeting will be held on July 13, the deadline for bid submission is July 26, 2021, on which bid opening is also scheduled.

CESL, a wholly-owned subsidiary of Energy Efficiency Services Limited (EESL), is focused on delivering clean, affordable and reliable energy. The full EoI document can be accessed here.

The selected manufacturers would be required to design, engineer, manufacture, test, inspect, supply, transport, and provide complete system warranty and after-sales support. A quarter of the tendered quantity is reserved for micro and small enterprises (MSEs) suppliers, of which 4% is earmarked for procurement by SC and ST entrepreneurs, and 3% is reserved for women entrepreneurs.

All MSEs are exempted from paying the security deposit subject to providing proof of registration as MSE (indicating the validity date of their registration) with any agency mentioned in the notification of the Ministry of Micro, Small, and Medium Enterprises. CESL will deploy the e-rickshaws per the needs of the end-users and the product availability to suit the functional requirements within the stipulated period of seven days from the date of the issuance of the letter of award.

Additionally, if the MSE vendor participating in the tender quotes within the price band of lowest (L1)+15%, he will be awarded 25% of the total tendered work requirement subject to acceptance of the L1 price. In the case of more than one such MSE, the supply will be shared proportionately. If the work cannot be split, then the MSE quoting price within the price band of L1+15% may be awarded the complete supply of the tendered value.

The eligibility requirements for participation in the bidding process are: the OEM should be an e-rickshaw manufacturer and should not have been blacklisted by any government agency or public sector undertaking. The OEM should have experience in manufacturing a minimum of 100 e-rickshaws annually, and should have sold a minimum of 500 e-rickshaws annually in the last three years or an aggregate of 1,000 e-rickshaws in the last three years.

Alternatively, for pure electric vehicle-based companies, the OEM should have sold a minimum of 100 e-rickshaws from the date of incorporation. The model of the e-rickshaw offered by the OEM for supply against this EoI must have sold a minimum of 100 units in the last year. The product offered by the OEM should meet the functional requirements and technical specifications as stipulated in the EoI.

The OEM’s average annual turnover for the last three years should be at least ₹100 million, and the bidder should have been profitable in two of the last three years. The OEM’s net worth in the last financial year should not be less than 100% of the paid-up share capital. As a designated agency, EESL will aggregate demand for 300,000 e-rickshaws for multiple user segments.

Past performance of OEMs with CESL, i.e., related to quality, supply, performance, etc., would be considered by CESL during the OEM empanelment. CESL intends to procure e-rickshaws as per the guidelines of the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles, Phase-II (FAME-II) India program.

Last month, CESL announced that it will supply 30,000 electric two-wheelers to Andhra Pradesh, Kerala and Goa, in a boost to India’s ambitious plans for green mobility.

Post the roll out of the amendments to the FAME-II electric vehicle policy, electric scooter maker Ola, joined the likes of Hero Electric, Mahindra Electric Mobility and Kinetic Green Energy and Power Solutions, to gain contracts from CESL for the supply of electric two and three wheelers along with charging infrastructure.