CHENNAI: After missing out on Faster Adoption of Manufacturing of Electric Vehicles (FAME) I and II scheme and Grand Challenge-1, a huge global tender worth Rs 5,500 crore to procure 5,585 electric buses, Tamil Nadu now has a chance to avail of Union government subsidies under Grand Challenge-2 as it may send a proposal for procuring electric buses under fresh Expression of Interest (EoI) called by the Centre.
Convergence Energy Services Limited (CESL), a wholly-owned subsidiary of Energy Efficiency Services Limited (EESL) under the Ministry of Power, has floated the EoI inviting State Transport Undertakings (STUs) to submit proposals for buying electric buses on a Gross Cost Contracting (GCC) basis. Sources told TNIE that the last date for submitting the proposal has been extended from August 1 to August 10, and the State may have an opportunity to submit its proposal.
Since the Centre is pushing for GCC model, the operator will come along with buses. STUs can save on large upfront capital expenditure needed for procuring buses under the GCC or PPP model. Additionally, STUs can also reduce expenditure needed for maintaining inventory of spares and other consumables, sources said.
CESL has been mandated by the Niti Aayog and Ministry of Road Transport and Highways to deploy 50,000 electric vehicles under a National Electric Bus Program (NEBP). Any public sector undertaking, STU, special purpose vehicle, or transport authority engaged in public transport can participate in the EoI.
According to sources, the State government will also go ahead with procurement of 500 new electric buses and 2,213 diesel buses as per its agreement with German bank Kfw signed earlier this year, and, initially, 100 low-floor AC electric buses for urban operation will be bought.The Grand Challenge II gives the State an opportunity to seek the benefit of joint tender along with other entities and procure buses at lower cost, sources said.