Energy Efficiency Services Limited (EESL), which is under the administrative control of Ministry of Power, will procure 250 electric vehicles from Tata Motors and Hyundai Motor India. The companies were selected through an international competitive bidding process.
Tata Motors and Hyundai Motors will supply 150 Nexon electric compact SUVs and 100 Kona electric premium SUVs respectively for government use. The letter of award for the procurement was presented to two companies.
Vehicle procurement will be made with $5 million provided by the Asian Development Bank. The EESL has received financing from ADB towards the cost of scaling up and financing high priority areas like Demand-Side Energy Efficiency Sector Projects.
EESL Vice-Chairman Saurabh Kumar said that a shift to EVs would reduce dependence on oil imports and promote power capacity addition in India. This would greatly enhance the energy security of the country and would also lead to a reduction in GHG emissions from the transport sector. “Furthermore, we’re also working on the rapid establishment of EV charging stations, which will give a fillip to the electric vehicle sales, going forward.”
EESL will procure Tata Nexon at Rs.14.86 lakh each, Rs.13,000 cheaper than its ex-showroom price Rs. 14.99 lakh, whereas, Hyundai Kona, which offers a higher range, will offer at an 11 per cent lower price band of Rs. 21.36 lakh and with a standard three-year warranty. These electric vehicles will replace the existing fleet of petrol and diesel vehicles of the Central and State governments. EESL has already received an order for 300 Long Range EVs from The Agency for Non-Conventional Energy and Rural Technology (ANERT), Kerala, to be supplied in the initial phase.