Will TN opt for electric buses under the central government scheme? – The New Indian Express

Express press service

CHENNAI: After missing the Faster Electric Vehicle Manufacturing (FAME) adoption program I and II and Grand Challenge-1, a huge global tender worth Rs 5,500 crore for the purchase of 5,585 electric buses, Tamil Nadu now has a chance to avail Union government grants under Grand Challenge-2 as it can send a proposal for the purchase of electric buses under a new 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 Energy, has launched the Notice of Intent inviting State Transmission Companies (STU ) to submit proposals for the purchase of electric buses on a gross cost contract (GCC). Sources told TNIE that the deadline for submitting the proposal has been extended from August 1 to August 10 and the state may have the opportunity to submit its proposal.

Since the Center is pushing for the GCC model, the operator will come with buses. STUs can save on the large up-front capital expenditure required to purchase buses under the GCC or PPP model. Additionally, STUs can also reduce expenses needed to maintain inventory of spare parts and other consumables, sources said.

CESL has been commissioned by the Niti Aayog and the Ministry of Road Transport and Highways to deploy 50,000 electric vehicles under a National Electric Bus Program (NEBP). Any public sector company, 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 the purchase of 500 new electric buses and 2,213 diesel buses in accordance with its agreement with German bank Kfw signed earlier this year, and, as a first time, 100 AC electric low-floor buses for urban operation will be purchased. Grand Challenge II gives the state the opportunity to seek the benefit of joint bidding with other entities and procure buses at a lower cost, sources said.

CHENNAI: After missing the Faster Electric Vehicle Manufacturing (FAME) adoption program I and II and Grand Challenge-1, a huge global tender worth Rs 5,500 crore for the purchase of 5,585 electric buses, Tamil Nadu now has a chance to avail Union government grants under Grand Challenge-2 as it can send a proposal for the purchase of electric buses under a new 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 Energy, has launched the Notice of Intent inviting State Transmission Companies (STU ) to submit proposals for the purchase of electric buses on a gross cost contract (GCC). Sources told TNIE that the deadline for submitting the proposal has been extended from August 1 to August 10 and the state may have the opportunity to submit its proposal. Since the Center is pushing for the GCC model, the operator will come with buses. STUs can save on the large up-front capital expenditure required to purchase buses under the GCC or PPP model. Additionally, STUs can also reduce expenses needed to maintain inventory of spare parts and other consumables, sources said. CESL has been commissioned by the Niti Aayog and the Ministry of Road Transport and Highways to deploy 50,000 electric vehicles under a National Electric Bus Program (NEBP). Any public sector company, 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 the purchase of 500 new electric buses and 2,213 diesel buses in accordance with its agreement with German bank Kfw signed earlier this year, and, as a first time, 100 AC electric low-floor buses for urban operation will be purchased. Grand Challenge II gives the state the opportunity to seek the benefit of joint bidding with other entities and procure buses at a lower cost, sources said.

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