In India’s second electric vehicle (EV) tender, the Energy Efficiency Services Limited (EESL) announced it is out for procurement of 10,000 electric vehicles (EVs) to be used by government departments and agencies. The bid-submission deadline is April 26, 2018.
These EVs are being procured under the Faster Adoption and Manufacturing of [Hybrid &] Electric Vehicles (FAME) India program and scope of work includes design, engineering, manufacture, testing, inspection, supply, system warranty and delivery. The successful bidder will also provide warranty of the EVs for a six-year period. The battery cycle must be of six years.
Prior to delivery, the EVs must meet all regulatory and statutory norms, and obtain approvals/no-objection certificates from appropriate government agencies. If a successful bidder is found in delinquency, their contract will be cancelled, and they will be blacklisted by EESL for a three-year period.
For delay in delivery of the EVs, EESL will charge a 0.5 percent penalty per week on the value of EVs pending delivery. The penalty will have an upper cap of 5 percent of the value of delayed EVs.
For quality check, the EESL can visit the manufacturing site or supply chain for inspection and can order testing of samples at the cost of the bidder.
The bidder must pay contract performance guarantee (CPG) amounting to 10 percent of the contract value. The CPG will be valid for a period of seven years and four months.
Per EESL, in case of there being three successful bidders, the lowest (L1) bidder will be awarded 50 percent of the contract, the L2 bidder 30 percent and L3 bidder the remaining 20 percent. In case there are only two bidders, the L1 bidder will be awarded 60 percent of the contract whereas the L2 bidder will get the remaining 40 percent.
EESL is at the forefront of helping India make a switch from conventional vehicles to EVs. It issued India’s first EV tender for procurement of 10,000 EVs in August 2017. Automobile manufacturer Tata Motors recently rolled out its first batch of EVs for EESL.
Mercom previously reported that competition is heating up in India’s EV sector as the Indian government is currently targeting the sale of 6-7 million new hybrid and electric vehicles by 2020 under the National Electric Mobility Mission Plan (NEMMP), making EVs the next big cleantech opportunity in India.
A recent study by Niti Aayog and the Rocky Mountain Institute highlights the staggering potential of India’s EV market. Researchers found that India could account for more than one-third of the global market for EV batteries by 2030 if it becomes a 100 percent EV nation.
Mercom recently reported that in line with the Government of India’s vision of achieving 100 percent e-mobility by 2030, National E-Mobility Program has been launched in the country. The program is aimed at providing impetus to the entire e-mobility ecosystem, including the vehicle manufacturers, charging infrastructure companies, fleet operators, and service providers. The Minister of Power, R.K. Singh, flagged off the program which will be implemented in the country by EESL.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.