The wholly-owned subsidiary of Energy Efficiency Services Limited (EESL), CESL announced prices discovered for the Grand Challenge.
Prices discovered represent electric mobility as a ‘service,’ a business model that makes it affordable for State Transport Undertakings to adopt electric buses, a communication from the company said.
In an industry first, the challenge tender homogenises demand for electric buses, making this a step closer to standardisation of modern public mobility, it added.
The lowest price discovered for a 12-meter bus is INR 43.49/km, while for a 9-m bus is INR 39.21/km, including the cost of electricity for charging the buses, the company said.
Valuing over INR 5,000 crore, the Grand Challenge tender comprises demand for 5,450 buses across five major Indian cities – Kolkata, Delhi, Bangalore, Hyderabad and Surat. Prices discovered are the lowest ever and, more importantly, at par with or very close to the operational cost of diesel buses.
The buses are expected to operate around 4.71 billion kilometres over 12 years, saving 1.88 billion litres of fossil fuel. This will result in 3.31 million tonnes of CO2e from tailpipe emissions, the release added.
Additionally, these buses will benefit from the Central Government subsidy offered under the remodelled FAME-II scheme administered by the Ministry of Heavy Industries.
With the very low discovered prices under the Grand Challenge, a savings of approximately INR 361 crore of national subsidy can be realised, which in turn, may be utilised for additional buses, it added.
Mahua Acharya, MD & CEO, CESL, said, “The rates we have witnessed today make electric buses extremely competitive across the country. These rates are based on the terms and conditions of the tender and the sheer number of buses that cities have requested.”
The Grand Challenge will certainly encourage a faster transition to green mobility across the country while creating a synergy between private operators and state governments, she added.
Amitabh Kant, CEO, NITI Aayog, said, “The successful completion of one of the largest tenders in the world of 5,450 e-buses is a significant step for the country and its ambitions of electric mobility.”
He continued that these initiatives would be landmark steps in India’s electrification of public transportation - providing accessible, affordable, safe and clean transportation to the masses. The successful completion of the Grand Challenge will help fulfil the endeavour of Prime Minister Narendra Modi to make India a global leader in the fight against climate change.
Dr O P Agarwal, CEO, WRI India, said, “Standardisation of the terms and conditions of public mobility across Indian cities that each have unique needs is an extraordinary challenge.”
The Grand Challenge includes standard specifications for buses, depots and charging stations. The contract term is 12 years, with assured kilometres of 10 lakh per bus and a credible payment security system.
Special emphasis was paid to the requirement for domestic content, specifications for which are the highest to date, the release stated.
At least 25,000 people will be employed through this tender, of which 10% will be women. This does not include new employment created through new manufacturing facilities, it added.