The Andhra Pradesh Government signed the deal with Convergence Energy Services Ltd (CESL), according to which the company would provide 25,000 electric two-wheelers to the government for its employees. The pact was signed through the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) and the electric vehicles will be provided to its employees on a lease basis for those who are interested.

In an official statement, CESL said, “These electric vehicles will be provided to state government employees of Andhra Pradesh and the number may increase as per requirements.”

According to a report, the deal was signed by the S Ramana Reddy, Vice -Chairman and Managing Director (MD) of NREDCAP with Mahua Acharya, who is the Chief Executive Officer (CEO) and MD of CESL, which is a registered company under the government of India’s Ministry of Power.

According to CESL, electric two-wheelers will be provided on a monthly lease to the employees, which is inclusive of comprehensive insurance that will be deducted as EMI (Equated Monthly Installments) from the volunteering government employee’s account.

It was said that the electric two-wheeler would also carry a standard warranty of three years against any manufacturing defect. Batteries too will carry warranty till three years or 60,000 kms whichever comes earlier, added the note.

“Under the agreement, CESL and NREDCAP will work to aggregate demand, deploy electric vehicles, and build charging infrastructure. CESL will devise a suitable payment security mechanism, which will be facilitated by NREDCAP,” the note from CESL added.

Andhra Pradesh’s Energy minister Balineni Srinivasa Reddy was quoted as saying in an interview that this initiative could lead to the state going electric and boosting energy and financial savings of people, with a hope that more would make a shift to electric vehicles in future.