Convergence Energy Services Limited (CESL), a wholly owned subsidiary of Energy Efficiency Services Limited (EESL), has invited bids to select an operator for the procurement, supply, operation, and maintenance of 3,600 electric buses (e-bus) and development of allied electric and civil infrastructure on gross cost contracting under Pradhan Mantri (PM)-eBus Sewa initiative.

The last date for the submission of bids is December 14, 2023. Bids will be opened on the same day.

Bidders must submit a non-refundable tender fee of ₹25,000 (~$299.9).

The state-wise number of buses, the respective earnest money deposit (EMD), and minimum average annual turnover (MAAT) requirements for the tender are as follows:

Successful bidders should furnish a performance security within twenty-eight days of receiving the letter of award. The performance security should amount to 3-10% of the contract price.

Bidders must fulfill the annual turnover criteria, calculated as the average turnover over the last three years.

The net worth of the bidders must not be negative. Their net worth should not have experienced an erosion exceeding 30% over the last three years.

Bidders must visit and assess the site where the facilities are intended to be installed and its surroundings. They should independently acquire all necessary information required for the bid preparation and the subsequent contract for the supply and installation of the facilities.

CESL will assist the bidders and their personnel or agents in obtaining permissions from the authorities to execute the work.

Micro and Small Enterprises registered under Udyam Registration are exempt from submitting a tender fee.

Bidders are required to submit quotes for the complete facilities on a “single responsibility” basis. The total bid price should encompass all obligations outlined for the contractor. Bidders must provide pricing for the commercial, contractual, and technical obligations specified in the tender.

Bidders should have manufactured and supplied electric buses regularly, starting April 1, 2023.

They should have manufactured and supplied at least 25 electric buses in at least one of the last five financial years or the current financial year. They must have an annual capacity to manufacture and supply at least 500 electric buses before the bid due date.

The manufacturing facility must be located in India.

In January, CESL invited price bids to lease 3,500 electric cars to various departments and autonomous bodies across 18 states for 3-5 years.

A bidding process conducted by CESL showed that electric buses as a service are now the most cost-effective approach to urban public transport with or without subsidy.