Energy Efficiency Services Limited (EESL) will procure 10,000 electric vehicles from Tata Motors Limited. Tata Motors will supply the electric vehicles (EVs) in two phases – the first 500 e-cars will be supplied in November 2017, and the rest 9,500 EVs will be delivered in the second phase.
With this initiative EESL seeks to create a market for electric vehicles in order to boost e-mobility in the country, through its unique business model of aggregation of demand and bulk procurement. It is seeking to leverage the immense potential of replacement of existing vehicles in the government departments for initial demand aggregation.
EESL’s EV programme is a comprehensive solution to facilitate adoption of disruptive technology in the country. Along with procurement of 10,000 EVs through international competitive bidding, EESL will also identify a service provider agency. This agency, also appointed through competitive bidding, will carry out end-to-end fleet management of the procured vehicles for concerned government customers. Apart from continuing to aggregate demand, EESL will also be responsible for co-ordination between appointed agencies, monitoring and supervision, reporting, complaint redressal and payments. These cars will be used to replace petrol and diesel cars used by government and its agencies over a period of three to four years. The total number of vehicles used by the government and its agencies is estimated to be five lakhs.
As per a report published in May 2017 by Niti Aayog, making India’s passenger mobility shared, electric, and connected can cut energy demand by 64% and carbon emissions by 37% by 2030. Further, the shift to EVs through this programme will reduce dependence on oil and promote power capacity addition in India, thereby enhancing energy security, and will also lead to reduction in GHG emissions from the transport sector.