State-owned Convergence Energy Services Ltd (CESL) on Thursday said it has floated a tender for 4,675 electric buses worth Rs 5,000 crore.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

This is the second tender under the National Electric Bus Programme (NEBP), a company statement said.

Also, this is the third tender for electric buses following the 'Grand Challenge' tender of 5,450 e-buses that catalyzed this business and a recently concluded tender for 6,465 e-buses.

To accelerate EV adoption and cut fuel imports, carbon emissions and air pollution, STUs (state transport utilities) in Delhi, Kerala and Telangana will deploy 4,675 e-buses on the basis of a dry lease.

In a dry lease, the operator provides the buses to state transport corporations (STCs) without drivers or conductors, which are deployed by STCs.

A dry lease model has been enabled in NEBP to maintain employment in STCs that have such need. These buses will be owned and maintained by service providers for a period of 10 & 12 years, whilst being operated by STCs.

Service providers will be paid a monthly fee per bus.This tender is valued at about Rs 5,000 crore and primarily involves the cost of the buses, it stated.

Bidders and STCs are mandated and encouraged to employ women and create opportunities for a safe environment for them to work.

The deployment of 4,675 e-buses will lead to fuel savings of 15 lakh kilolitre/year and significant reduction in air pollution.