MoU signed between CESL and Three Wheels United to purchase 70,000 electric three-wheelers

19 Jul 2022 , 08:54 AM

Convergence Energy Services, a state-owned company, has partnered with Three Wheels United, a fintech company that specializes in electric vehicle financing, to purchase 70,000 electric three-wheelers over the next five years.

A Memorandum of Understanding (MoU) has been struck in this regard between Convergence Energy Services (CESL), a fully owned subsidiary of Energy Efficiency Services Ltd (EESL), and Three Wheels United (TWU).

According to a corporate release, CESL will purchase 70,000 electric three-wheelers (E3Ws) that will be distributed throughout India over the course of five years in various phases.

Three Wheels United will first purchase these E3Ws for deployment in Bengaluru and Delhi, with typical prices of Rs3 lakh and Rs3.5 lakh for passenger and cargo categories, respectively. TWU will also enlarge to such places when demand in other cities increases, according to the announcement.

To finish the full process described in the MoU by 2027, TWU will purchase the vehicles in numerous lots, ranging from 100 to 20,000 units, as per the agreement. As applicable, vehicles will get subsidies through the Ministry of Heavy Industries’ FAME II program.

As a result of a notification in the Indian Gazette to aggregate demand for electric three-wheelers, CESL organized a tender for 100,000 vehicles, which led to this arrangement.

By promoting the market through proactive outreach and raising knowledge about electric mobility, the CESL will aggregate high-quality demand for electric three-wheelers across numerous cities in India as part of this cooperation.

The demand that CESL has already seen from many cities around the nation will be added to by this.