$10 billion tender for 50000 electric buses may come soon

21 Jul 2022 , 09:59 AM

India’s attempts to decarbonize public transportation and assist the country to achieve net zero emissions will be driven by a $10 billion tender for 50,000 electric buses being organized by the state-controlled Convergence Energy Services Ltd.

Such tenders are starting to resemble infrastructure projects, according to CESL Managing Director Mahua Acharya, and local manufacture of electric buses is anticipated to increase in line with demand.

In an interview with Bloomberg Television, Acharya stated that “this country is going very very swiftly on its aspiration for electric automobiles.” Therefore, finance is still a barrier even if it provides a chance.

In 2020, CESL was established to oversee the leasing operations for solar and electric vehicles for its parent company, Energy Efficiency Services Ltd., a joint venture between four state-run energy corporations. To reach net zero emissions by 2070, India plans to reduce its overall estimated carbon emissions by 1 billion tonnes by 2030. These are the important companies that will play a significant role in this effort.

To assure the adoption of electric cars, India, the third-largest emitter in the world, needs to construct charging stations, expand the grid’s capabilities, and remodel depots, according to Acharya. Additionally, she expressed alarm about the continued battery supply problems.

According to Acharya, India could electrify all of the two-wheelers now on the road in five to seven years and all of the public buses. At the beginning of the year, five state governments contracted with CESL to provide 5,450 electric buses.