CESL floats rate contract for 1,000 e-cars

New Delhi: Convergence Energy Services (CESL) on Thursday said it has floated a rate contract for procuring 1,000 electric cars on a five-year lease on a pan-India basis.

The rate contract is under the 'EV as a Service' model developed by CESL and will target to deploy 1,000 e-cars across India in the first phase, the company said in a statement.

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According to the statement, such deployment will include the provision of fleet management services, including repair and maintenance, vehicle insurance, roadside assistance, and drivers (optional).

CESL, a wholly-owned subsidiary of Energy Efficiency Services Ltd (EESL), which is under the Ministry of Power has placed a rate contract for a five-year lease of 1,000 e-cars, on a pan-India basis.

Since 2018, EESL and CESL have jointly deployed approximately 2,000 e-cars on a lease basis with different departments under the central and state governments and CPSUs.

This new initiative of deploying 1,000 e-cars is designed with the objective to provide affordable, sustainable, clean and green mobility in the country.

This would also serve as a means to fortify market acceptance of electric vehicles in the lease and rental space.

India's commitment to achieve net-zero emissions by 2070 requires focused efforts from all sectors to reduce the climate impact of the transportation sector and accelerate efforts towards sustainable road transportation.

"EV-as-a-Service has followed a unique procurement model that enables CESL to deploy e-cars of any make/model available in India, which are eligible as per Make in India guidelines. Further, CESL shall be ensuring adherence to all compliances with respect to various statutory rules, to avoid violations in lease/rental of vehicles," CESL MD and CEO Vishal Kapoor said.

This will further strengthen our commitment towards eradicating barriers to mass adoption of EVs in India, Kapoor added.

By employing unique business models, Convergence is utilising a blend of concessional and commercial capital, carbon finance and grants as appropriate to enable the commercialisation of these solutions at scale.

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