Govt owned EESL floats tender to procure 10,000 electric cars

Piyush Goyal had earlier said "Hybrids reduce fuel consumption a little bit but the future is all electric cars. I had also recommended to the finance minister that it is not advisable for an intermediate technology which reduces the fuel consumption but otherwise is not the future, the future is all electric cars."

By: | Updated: August 15, 2017 7:06 PM
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Energy Efficiency Services Limited (EESL) a public sector undertaking of Ministry of Power within the government has floated a tender to procure about 10,000 electric cars and 4000 chargers for coal, mines, power and new & renewable energy ministries under the FAME (faster adoption and manufacturing of electric vehicles in India) scheme introduced by Ministry of new and renewable energy. The tender states that EESL is looking to procure about slow chargers which has a power output equivalent to 3000 AC (alternate current) and 1000 fast chargers with a power output of 1000 DC (direct current) compatible with Bharat AC-001 and DC-001 charger specification norms. These procured electric cars will also be put on rent to other departments across various ministries. This tender would indeed open up new ventures to manufacture and sell electric cars in India and will help to push government’s plan to electrify vehicles in India by 2030. Minister responsible for Power, Coal, Mine, New & renewable Energy Minister Piyush Goyal had earlier expressed his desire that only electric cars would be on sale in India starting 2030. "Only electric cars by 2030, existing cars may take a little longer to replace. But the government is working on a framework to see what we can do on promoting electric vehicle. Niti Aayog is currently tasked with preparing futuristic vision for electric vehicles," Goyal had said earlier.

Also read: Hyundai Motor India to consider bringing in electric version of Grand i10 and i20 models

While electric vehicles in India have got some serious attention from the Government, hybrids have been totally ignored and are not even being considered as option which has lead to high taxation on hybrid cars post the implementation of Goods and Service Tax (GST). Goyal further added, "Hybrids reduced fuel consumption a little bit but the future is all electric cars. I had also recommended to the finance minister that it is not advisable for an intermediate technology which reduces the fuel consumption but otherwise is not the future, the future is all electric cars."
Toyota Kirloskar, Honda Cars India, Volvo Cars India sell full hybrid cars India currently and have been promoting it for a while whereas Mahindra, Maruti Suzuki have mild hybrid cars in their respective portfolios. Recently, Hyundai Motor India denied its plans to bring in any mild hybrids to its portfolio. Several media reports suggest that many companies are trying to lobby in favour of hybrid cars on which Piyush Goyal said, "It is a campaign being run by those companies who don't have electric vehicles. These companies have come to me also to convince not to oppose hybrid cars. The world is moving towards electric vehicles and the country would promote electric vehicles."

Currently, Mahindra Electric is the sole electric car manufacturer in India head quartered in Bangalore and has two cars and one commercial vehicle in its product line-up.

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