Energy Efficiency Services, a joint venture company formed by the public sector units (PSUs) under the Ministry of Power, will procure 10,000 electric vehicles from Tata Motors in order to replace the existing fleet of diesel and petrol vehicles of the central government and its agencies. Tata Motors was chosen through an international competitive bidding aimed at increased participation and will supply the electric vehicles in two phases – first 500 e-cars will be supplied to EESL in November 2017 while the remaining 9,500 vehicles will be delivered in the second phase. “Tata Motors is extremely proud to partner with the government of India in its journey to facilitate faster adoption of electric vehicles and to build a sustainable India. Tata Motors has been collaboratively working to develop electric powertrain technology for its selected products. EESL tender provided us the opportunity to participate in boosting e-mobility in the country,” said Guenter Butschek, CEO & MD, Tata Motors.
Tata Motors is reportedly developing an electric variant of its small car Nano and recently launched compact hatchback Tiago. The tender was floated by EESL last month which attracted bids from manufacturers such as Mahindra and Mahindra (M&M) and Nissan. “These cars will be used to replace the petrol and diesel cars used by the government and its agencies over a three-four-year period. The total number of vehicles used by the government and its agencies is estimated to be around 5 lakh,” the ministry said in a release.
According to the press release issued by the Ministry of Power, Tata Motors quoted the lowest price of Rs 10.16 lakh exclusive of the GST in the competitive bidding. The vehicle will be provided to EESL for Rs 11.2 lakh which will be inclusive of the GST along with a comprehensive five-year warranty. The price is 25% lower compared with the current retail price of a similar e car with a three-year warranty.
EESL will also identify a service provider agency, to be appointed through a competitive bidding, which will carry out end-to-end fleet management of the procured vehicles for the concerned government customer. The joint venture firm will also be responsible for coordination between appointed agencies regarding monitoring and supervision, reporting, complaint redress and payments.