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Convergence Energy Services Ltd floats tender for 5,580 electric busses

By: Pallab Ghosh
Radiance News Service

Niti Ayog alongwith Energy Services Limited’s (CESL) is planning to bring electric busses or e-busses in order to have a better and pollution-free traveling experience in city busses. On Thursday, Niti Aayog CEO, Amitabh Kant launched Convergence Energy Services Limited’s (CESL) tender for electric buses seeking bids for procuring 5,580 electric buses to be deployed across five major cities. Delhi, Kolkata, Bengaluru, Surat, and Hyderabad will be covered in the first phase.


The event was attended by CEO, Niti Ayog, Amitabh Kant; MD & CEO, CESL, Mahua Acharya; MD, Telangana State Road Transport (TSRTC); MD, West Bengal Transport Corporation (TBC), Rajanvir Singh Kapur; and Delhi Transport Minister & Environment Minister Kailash Gehlot.

In his keynote address, Amitabh Kant said, "There is a need to have more electric busses in India as it would help to reduce air pollution and largely fulfill the COP 26 targets seeking a blanket ban on carbon emission". He said primarily the aim should be to focus on mobility of people and not moving vehicles which can only be achieved through public transportation. "It's important to improve and modernize the public transportation".

Amitabh Kant said, "Automobile sector accounts for 49 per cent of manufacturing, 7.2 per cent of India’s GDP and generates 40 lakh jobs. India’s sales of vehicles will be more than triple from 2.5 to 8 crores in 2030". He said India is only 20 cars per 1000 people compared to 800 in the USA. "There is the immense growth potential for automobile sector in the country. Electric vehicles are the future", added Kant.

Under the ‘grand challenge’, CESL, a wholly-owned subsidiary of Energy Efficiency Services Limited (EESL), announced proposals for the biggest-ever demand for electric buses across five cities. Kant informed that Indian automobile giants like Ashok Leyland, Tata Motors JBM, etc. will compete with industry players from South Korea in the tender which could be between Rs 3500 to 5500 crore. "This is in tune with commitments made by Prime Minister Narendra Modi for making India a Net Zero nation by 2050 and getting closer to achieving Energy Independence by 2047", added CEO, Niti Ayog. 

The tender includes completely 100 per cent electric buses and aims to reduce the operating costs for cities, removing bottlenecks of procuring e-buses by State Transport Undertakings (STUs), instituting best in class practices, and operating standards, and enabling operational and passenger efficiencies by evolving into a platform for modernisation of city bus. 

“The 'grand challenge' tender is the collective efforts by large number of people involved with the project - STUs,  Niti Aayog, OEMs, financiers, DHI, and last but not the least my team", said Mahua Acharya. Referring to the programme as the biggest ever scheme in the world, she said it is based on an innovative, asset-light model that enables the STUs to deploy affordably at scale".  "The ‘grand challenge’ will encourage the faster transition to green mobility across India and create a synergy between private operators and state governments", added Acharya.

Speaking on this occasion, Gehlot said, "Delhi has been aggressively promoting the electric busses and a few days ago Chief Minister Arvind Kejriwal had flagged off the first fleet of electric busses". He informed Delhi requires 1,500 buses under the scheme and stands ready to offer state subsidies. "Electric busses are the future mobility and I compliment Niti Ayog, and  CESL for its efforts to standardize the terms and conditions for how this is delivered", added Gehlot.

Sajjanar welcomed the initiative and said such projects are the call of the hour as they would help to combat pollution. Talking of his state Telangana, the top cop said this will help the public transport system in a big way and the state is ready to cooperate in whatever way it is required.  

Rajanvir Singh Kapur welcomed the concept of electric busses and expressed happiness that with the introduction of these busses pollution will reduce across Kolkata. He said the existing busses will be shifted to suburbs and districts. He complimented Niti Ayog and CESL for the speed they have been working on the project. "I feel happy to inform you that we had a meeting with all the electric suppliers across Kolkata. They assured us that the service will be available at 23 depots". "This will not only help the public transport but also encourage people to invest in electric vehicles", added Kapur.

The CESL aims to deploy 5,450 single-decker buses and 130 double-decker buses through the Grand Challenge. CESL which has plans to take these electric busses to other states in the future is also working towards enabling battery-powered electric mobility to make public transport better and carbon emission-free.