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Telangana, MP, Rajasthan jump on e-mobility bandwagon

Number of vehicles needed hasn’t been finalised for Telangana, Madhya Pradesh and Rajasthan

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Telangana, Madhya Pradesh and Rajasthan governments too have shown interest in procuring electric vehicles from state-run Energy Efficiency Services Ltd (EESL).

So far, only the Centre along with the state governments of Maharashtra, Gujarat and Andhra Pradesh have entered into an agreement with EESL for procuring electric vehicles (EV) to be used by government officials.

EESL is a joint venture between four public sector undertakings into power sector, namely - NTPC, Power Finance Corporation Ltd, Rural Electrification Corporation Ltd and Power Grid Corporation of India.

When procured, the EVs will substantially replace fossil fuel-powered passenger cars that are utilised for official purposes, thereby, reducing air pollution and also saving the already depleting hydrocarbon resources.

EESL managing director Saurabh Kumar on Thursday said, "We have so far deployed about 200 cars in Delhi, another 150 are under registration and from mid-June onwards 1,000 cars every month will go to Andhra Pradesh and Government of Maharashtra's initial demand is for 1,000 cars."

These cars being supplied are a part of the initial tender floated last year by EESL for 10,000 cars, from which the vehicles are being supplied to various governments. Tata Motors and Mahindra & Mahindra are supplying around 5,000 vehicles each as part of the initial bid.

Andhra Pradesh alone wants 10,000 of such vehicles, which has given rise to need for floating subsequent tenders by EESL.

As per the agreements in place, Maharashtra wants 1,000 cars as part of the first phase while Gujarat alone needs a supply of about 8,000 vehicles.

As part of the project to promote e-mobility for cleaner environment, Erik Solheim, executive director of United Nations Environment Programme, will be meeting Hyderabad Municipal Corporation officials to ink an agreement.

"Number of vehicles needed hasn't been finalised for Telangana, Madhya Pradesh and Rajasthan. We are working on the numbers. It is the General Administration Department of each of the states who have to check how many cars are there and can be electrified," said Kumar.

There are around half a million cars with the Union government and an equal number is estimated to be in use with different state governments. Approximately 70-80% of these numbers are leased by the government.

EESL is opting for replacement of these leased vehicles by providing three options – wet lease (car and driver provided), dry lease (only car) and outright purchase. Most of the state governments are opting for dry lease to get electric vehicles into their respective system.

Banking on e-mobility business, EESL is looking forward to this becoming a larger revenue stream in a couple of years.

As standardisation of charging stations is crucial to promote e-mobility over petrol and diesel powered cars, Ministry of Heavy Industries is in the process of finalising a policy on charging stations. The policy is expected to incorporate existing standards on charging stations, which would help in attracting more players to expand the e-mobility market.

As a result of that, the second round of bidding to procure another 10,000 electric vehicles has been put on hold, Kumar said.

Meanwhile, on Thursday, Government of Maharashtra announced Electric Vehicle and Related Infrastructure Policy – 2018, which aims to establish the state as a globally competitive destination for electric vehicles and component manufacturing while simultaneously promoting their wide-spread adoption.

The Memorandum of Understanding inked between EESL and Maharashtra on Thursday will support the state government's vision of generating investment worth Rs 25,000 crore in electric vehicles and component manufacturing, assembly enterprises and charging equipment manufacturing.

ALL CHARGED UP

  • Number of vehicles needed hasn’t been finalised for Telangana, Madhya Pradesh and Rajasthan
     
  • Andhra wants 10,000 EVs, Gujarat 8,000 and Maharashtra wants 1,000 cars as part of phase one
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