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					</table><p>Subsidies worth ₹52.28 billion (~$627 million) have been disbursed to electric vehicle (EV) manufacturers on the sale of ~1.15 million EVs, as of December 2023, in a bid to improve faster adoption of EVs in India, <a href="https://heavyindustries.gov.in/" target="_blank" rel="noopener">Ministry of Heavy Industries</a> informed the Lok Sabha.</p>
<p>The subsidies are under the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME ) program that came into force in April 2019 to support the electrification of public and shared transportation.</p>
<p>The program also provided a capital subsidy of ₹8 billion ($96 million) to three oil marketing companies of the Ministry of Petroleum and Natural Gas for the establishment of 7,432 EV public charging stations, Minister of State for Heavy Industries Krishan Pal Gurjar said.</p>
<p>The Ministry also approved 6,862 electric buses to various cities and state government entities for intra-city operations as of November 29, 2023.</p>
<p>Under the FAME India program, concessions are provided to EV consumers in the form of an upfront reduced purchase price of hybrid or EVs, which is then reimbursed to the EV manufacturers.</p>
<p>As of November 29, 2023, a total of 62 EV manufacturers are registered under the program to avail of the demand incentive. The total claims submitted on the portal amounted to ₹50.94 billion (~$611.41 million) as of November 15, 2023, out of which ₹38.15 billion (~$457.90 million) has been disbursed.</p>
<p>In October, Union Minister for Power and New &amp; Renewable Energy R K Singh <a href="https://www.mercomindia.com/government-to-to-boost-ev-adoption-r-k-singh" target="_blank" rel="noopener">announced</a> that the government is working on a second Production Linked Initiative program that will cut down the cost of battery storage and boost the adoption of EVs in India.</p>
<p>In the third quarter of the 2023 fiscal year, the sale of EVs across India <a href="https://www.mercomindia.com/electric-vehicle-sales-q3-2023" target="_blank" rel="noopener">touched</a> 371,214 units, which is a 40% year-over-year increase from the corresponding period last year.</p>
<p>Earlier this year, the Parliamentary Standing Committee on Industry <a href="https://www.mercomindia.com/parliament-panel-extension-fame-program-2027" target="_blank" rel="noopener">recommended</a> that the government extend Phase II of the FAME program for at least three years beyond March 31, 2024, to make EVs a norm in the Indian automobile market.</p>
<p>The standing committee noted that FAME Phase-II had set a target to support ~1.56 million EVs in five years. However, until December 2022, it had achieved only 51.96% of the target by supporting 811,725 vehicles.</p>


EV Manufacturers Received ₹52 Billion in Subsidies Until December 1, 2023

<p>Convergence Energy Services Limited (<a href="https://www.convergence.co.in/media-corner" target="_blank" rel="noopener">CESL</a>), a wholly-owned subsidiary of Energy Efficiency Services Limited (<a href="https://eeslindia.org/en/home/" target="_blank" rel="noopener">EESL</a>), announced that its tender for operating 5,450 electric buses has resulted in the lowest-ever prices. The prices are similar to or very close to the operational cost of diesel buses.</p>
<p>The lowest bid offered for operating a 12-meter bus was ₹43.49 ($0.56)/km, ₹39.21 ($0.51)/km for a 9-meter bus, including the expenses for charging the buses.</p>
<p>According to CESL, the prices discovered were lower by at least 15% to 48% than the lowest prices discovered in the past.</p>
<p>The prices discovered are for electric mobility as a “service,” a relatively new and emerging business model, making it affordable for state transport undertakings to adopt electric buses.</p>
<p><a href="https://www.tatamotors.com/" target="_blank" rel="noopener">Tata Motors</a> emerged as the lowest bidder in all five categories of electric buses across the five cities.</p>
<p>CESL had <a href="https://mercomindia.com/tender-deploy-5585-electric-buses-five-major-cities/" target="_blank" rel="noopener">issued</a> the tender under the ‘Grand Challenge’ program to select bus operators for the procurement, operation, and maintenance of 5,450 electric buses, 135 double-decker electric buses, and allied electric and civil infrastructure on gross cost contract.</p>
<p>The Grand Challenges tender aims to homogenize the demand for electric buses, encouraging smaller cities in India to adopt modern public mobility. EESL promotes electric transport as a service, considering the high fuel prices.</p>
<p>The estimated cost of the tender is ₹500 million ($6.52 million). The buses will be deployed in Kolkata, New Delhi, Bangalore, Hyderabad, and Surat.</p>
<p>The selected bidders would supply buses under the operating expenses (OPEX) model with an annual assured bus kilometer of 70,000 km per bus for 12 years for 12 m and 9 m buses. The buses will be in operation for 12 years or 10,000 km, whichever is earlier. The minimum fleet availability factor will be 95%.</p>
<p>The electric buses will help mitigate 3.31 million tons of carbon emissions by running at least 4.71 billion kilometers in 12 years and would save 1.88 billion liters of fossil fuel.</p>
<p>The tender is likely to generate 25,000 employment opportunities, including 10% jobs for women. This excludes the new employment opportunities created through new manufacturing facilities.</p>
<p>The Central Government will extend the subsidy to the electric buses under the remodeled Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME II) program administered by the <a href="https://www.dhi.nic.in/" target="_blank" rel="noopener">Ministry of Heavy Industries</a>. The low prices will also lead to savings of a national subsidy of approximately ₹36.1 million ($4.71 million), which can be further utilized in additional buses.</p>
<p>Last June, the Central Government initiated the homogenization process in which nine cities were selected for subsidies under the FAME II program.</p>
<p>The wholly-owned subsidiary of EESL had also<a href="https://mercomindia.com/tender-floated-to-empanel-vendors/" target="_blank" rel="noopener"> invited</a> bids in December 2021 to empanel vendors to lease 1,000 electric four-wheelers for various government departments.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.</p>


First of its Kind Auction Brings Down the Cost of Operating Electric Buses Close to Diesel


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					</table><p>The Ministry of Heavy Industries’ (<a href="https://heavyindustries.gov.in/">MHI</a>) tender to <a href="https://mercomindia.com/bids-manufacturing-of-advanced-chemistry-cells-energy-storage/">select</a> manufacturers for setting up production capacities for at least 50 GWh of advanced chemistry cell (ACC) for energy storage under the production-linked incentive (PLI) program was oversubscribed by 2.6 times with 130 GWh capacity.</p>
<p>A total of ten companies, including Reliance New Energy Solar, Hyundai Global Motors, Ola Electric Mobility, Lucas-TVS, Mahindra &amp; Mahindra, Amara Raja Batteries, Exide Industries, Rajesh Exports, Larsen &amp; Toubro, and India Power Corporation, submitted their bids for the tender.</p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-31816 aligncenter" src="https://mercomindia.com/wp-content/uploads/2022/01/Pp.png" alt="List of Bidders for Ministry for Heavy Industries' Tender to Set Up Manufacturing Capacity of Advanced Chemistry Cells for Energy Storage Under the Production Linked Incentive Program " width="404" height="338" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/01/Pp.png 404w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/01/Pp-300x251.png 300w" sizes="(max-width: 404px) 100vw, 404px" /></p>
<p>The Ministry informed that the manufacturing facilities must be set up within two years. It would disburse the incentive after the facilities were set up over five years on the sale of the batteries.</p>
<p>In June 2021, the Department of Heavy Industry <a href="https://mercomindia.com/dhi-issues-details-pli-program/" target="_blank" rel="noopener">issued</a> a notification for the PLI program ‘National program on ACC battery storage’ to implement ACC manufacturing facilities for electric vehicles (EVs). The department allocated a total of ₹181 billion (~$2.47 billion) as the program’s total incentive payout for five years.</p>
<p>The PLI program aims to boost domestic manufacturing, facilitate battery storage demand for EVs and stationary storage, develop a complete domestic supply chain and encourage foreign direct investment. The program would also help India reduce its import of crude oil significantly and enhance the share of renewable energy at the national grid level.</p>
<p>The PLI program for ACC along with the already launched PLI program of ₹259.38 billion (~$3.49 billion) for the automotive sector and Faster Adaption of Manufacturing of Electric Vehicles (FAME) program with a budgetary outlay of ₹100 billion (~$1.34 billion) would enable India to move towards environmentally friendly, advanced, and sustainable EV-based transportation.</p>
<p>In October 2021, Bharat Heavy Electricals <a href="https://mercomindia.com/bhel-eoi-battery-storage-gigafactory-pli/" target="_blank" rel="noopener">invited</a> bids to select partners to set up a gigawatt-scale ACC battery storage facility through a special purpose vehicle (SPV) under the Government of India’s PLI program.</p>
<p>Mercom had earlier <a href="https://mercomindia.com/india-gets-incentive-plan/" target="_blank" rel="noopener">reported</a> that the central government approved the PLI program for ten critical sectors to enhance India’s manufacturing capabilities and exports under the Atmanirbhar Bharat (self-reliant India) initiative.</p>


Tender to Set Up 50 GWh of ACC for Energy Storage Receives Massive Response

<p>Through its <a href="https://dhi.nic.in/" target="_blank" rel="noopener">Ministry of Heavy Industries</a>, the Government of India has invited bids to select manufacturers for setting up production capacities for at least 5 GWh and totaling up to 50 GWh of Advanced Chemistry Cells (ACC) for energy storage under the production-linked incentive (PLI) program.</p>
<p>The last date to submit the bids is December 31, 2021, and bids will be opened on January 3, 2022. The pre-bid meeting will take place on November 12.</p>
<p>The successful bidder to be eligible for the subsidy will have to commit to set up an ACC manufacturing facility of a minimum 5 GWh capacity and with value addition of a minimum of 25% within two years from the appointed date and a minimum of 60% value addition within five years from the specified date.</p>
<p>The amount of subsidy quoted by the bidder should be subject to a ceiling of ₹2,000 (~$26.63)/KWh. Any bid that will quote a subsidy of over ₹2,000 (~$26.63)/kWh will be rejected.</p>
<p>The successful bidder should furnish a bid security amount of ₹10 billion (~$133.14 million) in favor of the Government of India as bid security in the form of a bank guarantee from any nationalized bank or a scheduled bank in India.</p>
<p>In June this year, the Department of Heavy Industry, Government of India, <a href="https://mercomindia.com/dhi-issues-details-pli-program/" target="_blank" rel="noopener">issued</a> a notification for the PLI program ‘National program on Advanced Chemistry Cell battery storage’ to implement ACC manufacturing facilities for electric vehicles.</p>
<p>Last November, the central government had <a href="https://mercomindia.com/india-gets-incentive-plan/" target="_blank" rel="noopener">approved</a> the PLI plan in ten critical sectors to enhance India’s manufacturing capabilities and exports under the Atmanirbhar Bharat initiative. The program’s total five-year incentive payout is ₹181 billion (~$2.47 billion) to support 50 GWh of domestic ACC manufacturing.</p>
<p>The bidder may be a sole firm, single entity, or group of entities coming together to implement the project. The bidder may be a person, private entity, public sector undertaking, or any combination with a formal intent to enter into an agreement or under an existing contract to form a consortium.</p>
<p>If the bidder is not an alternative investment fund (AIF) or foreign investment fund, the bidder should have a minimum net worth of ₹2.25 billion (~$29.96 million)/GWh. Alternatively, if the bidder is an AIF or a foreign investment fund, the bidder should have a minimum ACI of ₹2.25 billion (~$29.96 million)/GWh at the end of the last financial year. The bidder may bid for any capacity if such bidder has a net worth of at least ₹15 billion (~$199.71 million) per this request for proposal.</p>
<p>Recently, Bharat Heavy Electricals <a href="https://mercomindia.com/bhel-eoi-battery-storage-gigafactory-pli/" target="_blank" rel="noopener">invited</a> bids to select partners to set up a gigawatt-scale ACC battery storage facility through a special purpose vehicle.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.</p>


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