The Central government plan is to put 50,000 electric buses on the road in the next few years

The tender is worth more than Rs 30,800 crore. Over a twelve-year period, the buses are expected to travel approximately 5,718 million kilometres, saving 1,842 million litres of fossil fuel.

Convergence Energy Services Limited (CESL) has disclosed the prices discovered for the most significant non-subsidized demand for 6465 electric buses. The tender is worth more than Rs 30,800 crore. Over a twelve-year period, the buses are expected to travel approximately 5,718 million kilometres, saving 1,842 million litres of fossil fuel.

CESL discovered that the lowest cost to operate a 12 m intra-city bus is INR 54.3/km, while the lowest cost to operate a 12 m inter-city bus is INR 39.8/km for the tender issued under the National Electric Bus Programme (NEBP). The price discovered is INR 54.46/km for a 9 m bus and INR 61.92/km for a 7 m bus.

According to CESL, the prices do not include subsidies and are 29% lower than the cost of operating diesel buses. This was the largest e-bus tender under NEBP Phase-I, with 6,456 buses from six Indian states and UTs - Delhi, Telangana, Haryana, Surat (Gujarat), Kerala, and Arunachal Pradesh.

According to CESL, the prices realized set a benchmark for public transportation, and the price point may encourage even smaller cities to adopt electric vehicles. The buses are expected to travel approximately 5,718 million kilometres over a 12-year period, saving 1,842 million litres of fossil fuel.

This will result in 4.62 million tonnes of CO2e emissions from tailpipes, a significant step toward climate change mitigation. The private operator brings the bus and operates it for a period of 10 to 12 years under predetermined conditions specified in the tender under the Gross Cost Contract (GCC) model. The NEBP is intended to aggregate demand, assist STUs in incorporating electric buses into their operations, and collaborate with states and DISCOMs to support the development of charging infrastructure at their depots.

This tender is part of the central government's plan to put 50,000 electric buses on the road in the next few years, as well as to strengthen, modernize, and green public transportation in India. Prices realized set a benchmark for public transportation, with the price point encouraging even smaller cities to adopt electric vehicles.

This price discovery represents electric mobility as a "service," a relatively new and emerging business model that makes electric buses affordable for state transport undertakings. Electric buses will be used both within cities and on intercity routes, with the latter capable of travelling 325 kilometres on a single charge.

CMV360 always keeps you up to date on the latest government schemes, sales reports, and other relevant news. So, if you're looking for a platform where you can get relevant information about commercial vehicles, this is the place to be. Stay tuned for new updates.