EESL to invest US$368m in acquiring EVs for govt use

The Government-controlled Energy Efficiency Services Ltd (EESL) will acquire 20,000 electric vehicles by March 2019 for induction into government fleet as the nation moves towards all-electric mobility

April 3, 2018

With these 20,000 EVs, EESL expects to save over 50 million litres of fuel usage every year, leading to a reduction of more than 560,000 lakh tonnes of annual carbon dioxide emission

EESl has drawn a plan to set up EV charging stations across India; While 250 charging stations are operational in Delhi, a tender has been launched for another 2,500 stations across India

EESL’s orders are aimed at replacing the Government’s fleet of 550,000 vehicles, about 30 per cent of which are leased, over a period of three to six years in line with India’s all electric goal

EESL, a joint venture of four state-run enterprises and set up under the Ministry of Power, has been tasked with leading India’s EV action plan, while NITI Aayog is framing EV policies

The Energy Efficiency Services Ltd (EESL) plans to invest around US$368 million by March 2019 in order to acquire 20,000 electric vehicles (EVs), according to a report by the Press Trust of India citing EESL’s managing director Saurabh Kumar. EVs bought by the Government-controlled energy services agency will be inducted into the fleet of vehicles operated by Union and State Governments across the country. The move comes as part of the Government of India’s initiative to move all vehicles to electric platform to reduce air pollution. With these 20,000 EVs, EESL expects to save over 50 million litres of fuel usage every year, leading to a reduction of more than 560,000 lakh tonnes of carbon dioxide emission.

EESl is looking to enter into preliminary agreements with the State Governments of Maharashtra and Gujarat this month to provide 1,000 and 8,000 EVs, respectively. Last month, EESL had signed an agreement with the State Government of Andhra Pradesh to provide 10,000 EVs. In 2017, EESL has launched a global tender for 10,000 EVs that was won by Tata Motors and Mahindra & Mahindra. Mr Kumar said that 100 EVs have already been operationalised in Delhi. Besides rolling out EVs, EESl has drawn a plan to set up EV charging stations across the country. MR Kumar told PTI that EESL has already set up 250 charging stations in Delhi with a tender launched for another 2,500 stations across India.

EESL is a joint venture of four state-run enterprises – NTPC Ltd, Power Finance Corp Ltd, Rural Electrification Corp Ltd and Power Grid Corp of India Ltd – and set up under Ministry of Power. EESL acts as the resource center for capacity building for State Distribution Companies (DISCOMs), Energy Regulatory Commissions (ERCs), State Development Authorities (SDAs), upcoming ESCOs, financial institutions, among others. The agency has been tasked with leading the national EV action plan, while NITI Aayog is framing EV policies. EESL’s orders are aimed at replacing the Government’s fleet of around 550,000 vehicles, about 30 per cent of which are leased, over a period of three to six years.