Tata motors won the bid for 5450 e- buses

Mumbai/ New Delhi – Tata Motors has been announced as the lowest bidder in the mega tender for 5,450 electric buses floated by Convergence Energy Services (CESL) under the remodelled FAME II scheme. (news on tender covered in TBB India Feb 2022 Edition)

The lowest price discovered for a 12-meter bus is $0.57/km, and a 9-meter bus is $0.51/km. Prices are between 15 percent and 48 percent lower than the lowest price discovered by the cities.

In June 2021, the FAME II scheme was remodelled and its delivery mechanism changed to better suit the needs of state transport undertakings, especially in their financial ability to afford electric buses.

¹Convergence Energy Services Ltd (CESL), a wholly-owned subsidiary of Energy Efficiency Services Ltd (EESL), a joint venture of public sector companies under the India Ministry of Power. It is focused on delivering clean, affordable, and reliable energy. Convergence focuses on energy solutions that lie at the confluence of renewable energy, electric mobility, and climate change.

²FAME India Scheme – The FAME India Scheme is an abbreviation for the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India. This is an Indian government programme first introduced on April 1, 2015, to encourage manufacturers, component suppliers and other stake holders to invest in the manufacture, sale and support of hybrid and electric vehicles. Phase I of the original scheme ran for a period of two years i.e. April 1, 2015 to March 31, 2017, and then extended to March 2019. Under the FAME I scheme, USD123m was allotted out of the amount of USD 2.15bn(budgeted) set aside for this development. FAME phase II scheme with a fund allocation of USD 1.33bn from 1st April 2019 to 31st Mar 2022, and now it is extended till 31st March 2024.

³NEMMP was launched by the previous National Democratic Alliance (NPA) government in 2013 but was not implemented until the new government came into power (May 26, 2014). An agreement was signed off by Prime Minister, Modi, in Paris at the UN summit November 2015, which resulted in more initiatives with clear action plans. The proposal to encourage the uptake of electric vehicles is for vehicles to be sold without batteries at a 70% discount or subsidy equivalent. The batteries will be supplied and supported via a leasing model.

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