Energy Efficiency Services Limited (EESL), under the administration of Ministry of Power, Government of India (GoI), will procure 10,000 electric vehicles from Tata Motors Limited. The company was selected through an international competitive bidding aimed at increased participation. Tata Motors won the tender and will now supply the Electric Vehicles (EVs) in two phases – first 500 e-cars will be supplied to EESL in November 2017 and the rest 9,500 EVs will be delivered in the second phase. The tender floated by EESL is the world’s largest single electric vehicle procurement.
EESL is driven by the objective of facilitating faster adoption of disruptive technology solutions while balancing economic development and environmental sustainability. With this specific initiative EESL seeks to create the market for electric vehicles, a technology which is poised to boost e-mobility in the country; through its unique business model of aggregation of demand and bulk procurement. EESL is seeking to leverage the immense potential of replacement of existing vehicles in the government departments for initial demand aggregation.
EESL’s EV programme is a comprehensive solution to facilitate adoption of the disruptive technology in the country. These cars will be used to replace the petrol and diesel cars used by Government and its agencies over a 3-4 year period. The total number of vehicles used by the Government and its agencies is estimated to be 5 lakhs.
As per the report published in May 2017 by Niti Aayog, making India’s passenger mobility shared, electric, and connected can cut its energy demand by 64% and carbon emissions by 37% in 2030. This would result in a reduction of 156 Mtoe in diesel and petrol consumption for that year & at USD 52/bbl of crude, this would imply a net savings of roughly Rs 3.9 lakh crore in 2030. The shift to EVs through this programme will reduce dependence on oil imports and promote power capacity addition in India thereby enhancing energy security of the country and will also lead to reduction in GHG emissions from the transport sector.