Bhel may set up subsidiary for ElectraVan production, sale

Sanjay Jog

Mumbai, Sept 12: The state-run Bharat Heavy Electricals Limited (Bhel) is exploring the possibility of setting up a subsidiary to take care of the production and sale of its battery-powered vehicle ElectraVan. However, the company is of the view that the formation of a subsidiary will be linked to the volumes.

Bhel general manager Rajesh Sinha, who has been involved since its inception almost 20 years ago, told The Financial Express that the company may ponder over an idea of floating its arm entirely for the ElectraVan business. “We are aware that in the automotive business, volumes matter the most. Thus, when there will be rise in volumes, we may think of forming a subsidiary. We had tied up with Ashok Leyland, but it did not click,” he added.

Mr Sinha said that until then the company has decided to step up the production of ElectraVan through its existing facility situated in Bhopal.

Bhel general manager RC Chaudhari (in charge of switch gear) said that the company was optimistic to sell 50 ElectraVans, which costs Rs 13.5 lakh, during the current fiscal. In addition to this, the company has proposed to increase its sale at 100 during 2002-03, and thereafter at 300 buses. “The target buyers are IITs, educational institutions, government agencies, tourist centres and upcoming IT and bio-technology parks,” he added.

Mr Chaudhari said that the ElectraVan, with operating cost of Rs 8.04 per km (140 km per day, 340 days and Rs 3.80 pr kWh) with provision of replacement of battery after three years, can be an ideal vehicle for intra-city commuter service, airport shuttle service, postal service, mobile banking services and mobile kitchen services. “The company is holding talks with the Sahara Group, as well as various civic and corporate bodies to step up its sales,” he added.
Bhel deputy general manager (commercial) MG Kargaonkar said talks are on with the Maharashtra government authorities for the marketing of ElectraVans in tourist attractions such as Ajantha and Ellora in Marathwada, sanctuaries and forest divisions.

According to Mr Chaudhari, the Union ministry of non-conventional energy sources gives a 50 per cent cash subsidy to the buyers. In addition to this, 100 per cent depreciation in the year of purchase results in 35 per cent saving in income tax, he said. “ElectraVan, which has a maximum speed of 40 km per hour and 70 km range per charge, is being increasingly favoured to fight the menace of air pollution in urban areas, industries and institutions,” he added.