After granting contracts for 5,450 electric buses on behalf of five state governments earlier this year, Convergence Energy Services Limited (CESL) intends to solicit bids for the acquisition of further electric buses.
India plans to invest $10 billion (roughly Rs. 1,000 crores) in electric buses to modernise public transportation and reduce air pollution. The Centre has set a goal of achieving net zero emissions by 2070. Soon, the Convergence Energy Services Limited (CESL), a subsidiary of the Centre’s Energy Efficiency Services Limited (EESL), will issue a request for proposals for these electric buses.
As India’s demand for electric vehicles continues to rise, CESL has stated that it will concentrate on the local production of electric buses and the development of EV infrastructure. The Managing Director of CESL, Mahua Acharya, was reported by Bloomberg Television in an interview as saying, “This country’s ambitions for electric vehicles are developing really quickly. Therefore, finance is both a challenge and an opportunity.”
In five to seven years, according to Acharya, India could have only electric buses. “In addition to rebuilding public transportation depots for electric vehicles, India must improve its EV infrastructure and grid capacities,” she noted and added that battery supply problems are a cause for concern.
CESL leases solar and electric vehicles to EESL, which is essentially a joint venture between four state-owned energy corporations. Five state governments awarded CESL a deal for 5,450 electric buses earlier this year. CESL continues to seek investors for its distributed solar businesses, which it is currently funding internally.
