Convergence Energy Services Limited (CESL), a subsidiary under Energy Efficiency Services Ltd (EESL)., invited bids for 100,000 electric three-wheelers at a cost of Rs.3000 crore.

The Energy Efficiency Services Ltd (EESL) subsidiary expressed its desires of having 200,000 two-wheeled electric vehicles (EVs) and 300,000 three-wheeled electric vehicles (EVs) across India.

While the government on the other hand, places demand for electric three-wheeler and electric bus component to CESL's parent firm EESL under the Rs.10,000 crore Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme.

This scheme consists of objectives such as assisting with the electrification of public and shared transportation, as well as the development of charging infrastructure. In fact it's a key component of the government's plan to bring down vehicle emissions and reliance on fossil fuels.

CESL has been pooling demand for leasing out and operating three-wheeled EVs for the garbage collection fleet of municipalities across the country, including for Pune Municipal Corporation, while selling electric two-wheelers to states like Andhra Pradesh, Kerala, and Goa.

Seems the market is almost ready for EVs, as demands from cities, fleet operators, and financial institutions increase. Mahua Acharya, managing director and chief executive officer, CESL says, "we already hold third party investors and our objective is to rollout a major leasing company".

OEMs such as Kinetic Green Energy and Power Solutions and Mahindra Electric Mobility shared their interest in offering electric three-wheelers as part of CESL's scheme.

Cities that want to switch their rubbish collection fleets from fossil fuel to electric or add new fleets that are cleaner and less expensive to operate are also included in this tender. Demand for cars that will be utilized to offer jobs and administer vaccines makes up a large element of this tender.

Cities that want to switch their rubbish collection fleets from fossil fuel to electric or add new fleets that are cleaner and less expensive to operate are also included in this tender. Demand for cars that will be utilised to offer jobs and administer vaccines makes up a large element of this tender.

As that takes places, CESL discusses with Swachh Andhra about supplying an extra 15,000 garbage tippers to the state of Andhra Pradesh. With the involvement of Fame scheme, state government subsidies, EV maker support, and carbon credits, the company hopes to have half the cost of ownership of these vehicles. The government has also prolonged the Fame plan for another two years, until March 31, 2024, and upped the incentive for electric two-wheelers under it to $15,000 per KWh.

Financing companies, third-party logistics players, fleet operators with a playbook that includes responding to the needs of e-commerce players, municipalities, and private auto owners are among the prospective bidders, according to CESL.

CESL aims to lease around half of these vehicles, based on demand and it's already in talks with third-party investors, including private finance.

On that note, it has even involved non-banking financial companies (NBFCs) to lower EV loan interest rates by at least five percent to make them more affordable.