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CESL Places Order For 300 Tata Electric Vehicles With 250 Km Plus Range

Convergence Energy Services Limited (CESL), a subsidiary of Energy Efficiency Services Limited (EESL) will procure 300 electric vehicles from Tata Motors. A Letter of Award in favour of M/s Tata Motors has been issued to acquire 300 electric vehicles that offer 3 years of warranty. These electric vehicles are required to be four-wheelers within 4-metres in length and offer a range equal or more than 250 km. The initiative is claimed to be a part of the Scaling up Demand-Side Energy Efficiency Sector Project. The project is financed by the Asian Development Bank line of credit to CESL.

In its statement, CESL mentioned that it will work with Tata Motors on the design, manufacturing and providing maintenance support for electric cars pan India. CESL will work with Tata Motors to dispatch these EVs to Government entities that are open to changing their fleet of vehicles.

Mahua Acharya, CEO & MD, CESL, said “I am so pleased that more and more Government entities in India are switching over to electric transport. Our association with Tata Motors is a good development for the future of mobility in India.”

Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors, confirmed the automaker’s commitment to supporting the Government’s vision. He said; “we are delighted to partner with CESL once again. Purposeful collaboration amongst stakeholders is key to accelerate the mass adoption of environmentally-friendly solutions. As the leader in the rapidly growing Electric Mobility space, we remain focused on ramping up the access and use of EVs across India.”

CESL has announced that the total cost of the tender is said to be approximately Rs 44 crore. The tender has been segregated into two schedules. The first would be the procurement of 300 four-wheel EVs with 3-year warranties which would be acquired at the base price of Rs Rs 14,33,000 per unit, exclusive of GST. This accumulates to a total of Rs 42.99 crores.

The second schedule will cater to the costs related to inland transportation, including loading, unloading, transfer to the designated location, transit insurance, and other costs incidental to the delivery of vehicles. All of this is to be done at a cost of Rs 21,000 per vehicle, translating to a total of Rs 63,00,000. The total cost of the tender results to Rs 42,62,00,000.

No official timeline has been mentioned in the statement released by CESL for the acquisition of the 300 EVs. Tata Motors currently only manufactures the Tata Nexon EV. The Nexon EV is a sub-4-metre SUV priced between Rs 13.99-16.59 lakh (ex-showroom). It also has a certified range of 312 km on a single charge. It is possible that CESL will procure Tata Nexon EVs through this venture as it meets all the mentioned requirements. However, there was no mention of the model name in the official statement.