CESL Discovers Prices For 5450 Buses Under The Fame II Scheme

As the push for Electric Vehicles is getting immense, Convergence Energy Services Limited (CESL), a subsidiary of Energy Efficiency Services Limited (EESL), has announced that they have discovered prices for the biggest ever demand for electric buses. CESL says that the prices discovered for electric buses are the lowest ever, close to the operational cost of diesel buses. 

Fame India scheme has been launched by the government to encourage electric vehicle purchases. Under the scheme, the government is providing subsidies on the purchase of new electric vehicles to promote electric mobility. The government has extended the FAME II scheme till 2024.

The price discovered for a 12-meter bus is Rs. 43.49 per km, and a 9-meter bus is Rs. 39.21 per km. These prices are inclusive of the cost of electricity required for charging the buses. 

CESL says that these prices will encourage even the smaller cities to adopt electric public transport.

The Grand Challenge tender comprises demand for 5450 buses across five major Indian cities. Nine cities are eligible to receive subsidy under the remodeled FAME II Scheme of which five cities have participated in this tender like Kolkata, Delhi, Bangalore, Hyderabad and Surat. The value of the tender is over Rs. 5000 crores.

CESL says a savings of around Rs. 361 crore of national subsidy can be realized with the newly discovered prices under the Grand Challenge tender, which will be utilized for additional buses. 

Mahua Acharya, MD & CEO, CESL said “The rates we have witnessed today make electric buses extremely competitive across the country. These rates are based on the terms and conditions of the tender and the sheer number of buses that cities have requested. I am very thankful to the many STUs and State Governments who have worked with us tirelessly, NITI Aayog, the Ministry of Heavy Industries and the Ministry of Power, and of course WRI, UITP and the World Bank. I am confident that this mandate will help India to successfully meet the targets envisioned by our Honorable Prime Minister. The Grand Challenge will certainly encourage the faster transition to green mobility across the country while creating a synergy between private operators and state governments.”

Sharing his views, Amitabh Kant, CEO of NITI Aayog said “The successful completion of one of the largest tenders in the world. 5450 e-buses is a significant step for the country and its ambitions of electric mobility. The discovery of record-low prices paves the way for the electrification of public transit in a big way. This transparent exercise was also able to achieve harmonization of specifications across different cities - Delhi, Kolkata, Bengaluru, Hyderabad and Surat. It shows the collaborative nature of this exercise which resulted in the record fall of prices on per km basis to as low as Rs. 39.21 per km for 9-meter standard floor Non-AC electric bus.”