CESL to Empanel OEMs for Electric Two-Wheelers in Andhra Pradesh

Convergence Energy Services (CESL), a wholly-owned subsidiary of Energy Efficiency Services (EESL), has invited original equipment manufacturers (OEMs) to empanel for supplying electric two-wheelers (E2Ws) in Andhra Pradesh.

The last date for submission of bids is September 30, 2021. Bidders must pay ₹25,000 (~$393.33) towards the bidding document cost.

The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) has partnered with CESL to facilitate and finance E2Ws based on consumer demand. Andhra Pradesh government employees will lease the E2Ws for 36-60 months or make an upfront payment. In July this year, NREDCAP signed an agreement with CESL to procure 25,000 E2Ws in the state.

The scope of work for the OEMs includes designing, engineering, manufacturing, testing, inspection, supply, transportation, complete system warranty and transit insurance, delivery to the end-consumer, and providing after-sales support.


Medium and small enterprises (MSEs) are exempt from paying the bidding document cost. Of the total quantity, 25% is earmarked for MSEs.

Start-ups must submit certificates issued by the Department of Industrial Policy and Promotion (DIPP) to avail the exemptions. They must be registered within the last ten years and have an annual turnover not exceeding ₹1 billion (~$13.58 million) in any of the previous financial years.

All E2Ws must meet the technical compliance under the Faster Adoption and Manufacturing of Hybrid and Electric vehicle (FAME)-II guidelines. The E2Ws must have a 40-100 KM range in a single charge; low-speed vehicles must have a minimum range of 40 KM on a single charge.

The winning bidders must deliver the E2Ws within four weeks of receiving the purchase order.

In June, the Department of Heavy Industries announced partial amendments to the Faster Adoption and Manufacturing of Electric Vehicles in India Phase-II (FAME-II) program. In place of the earlier uniform demand incentive of ₹10000 ($137)/KWh for all vehicles, a specific demand incentive for E2Ws of ₹15,000 (~$205)/kWh was declared.

CESL has been working at enabling battery-powered electric mobility and its infrastructure. It is designing business models to increase the uptake of electric vehicles and aggregate demand.

In July, CESL had invited expressions of interest to empanel OEMs to supply E2Ws in Goa.

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