Tata Motors bags Rs. 5,000cr government tender for electric buses
Tata Motors has emerged as the lowest bidder for a government tender of 5,450 electric buses valued at Rs. 5,000 crore. The contract will be valid for a period of 12 years. The tender was floated by Convergence Energy Services Ltd. (CESL) under the Centre's FAME II scheme. The procured buses will ply across five Indian cities, namely Delhi, Bengaluru, Hyderabad, Surat, and Kolkata.
Why does this story matter?
Tata Motors' electric buses will operate for the next 12 years for around 4.71 billion kilometers. As per calculations, this will help in saving 1.88 billion liters of fossil fuel which would result in CO2 tailpipe emissions of 3.31 million tons, thereby mitigating climate change. Also, this tender will create 25,000 job opportunities, out of which around 10% will be reserved for women.
Who else took part in the bidding?
Apart from Tata Motors, Switch Mobility (Ashok Leyland's EV division), VECV (a joint venture between Eicher Motors and Volvo Group), and Evey Trans of the Olectra Group participated in the bidding for electric buses. The process was held across five categories, and the margin between the lowest and second-lowest bidders in all of the categories was around Rs. 10.
Bids were held for 9-meter and 12-meter buses
The five categories for the bidding included 12-meter low-floor AC and non-AC, 9-meter standard-floor AC and non-AC, and 12-meter standard-floor non-AC buses. For 12-meter low-floor non-AC, Tata Motors quoted Rs. 43.49/km per vehicle, while for 12-meter standard-floor AC, it bid Rs. 44.99/km. The bid for the 9-meter standard-floor AC and non-AC of the same size stood at Rs. 41.45/km and Rs. 39.21/km, respectively.
'Tata Motors committed to providing sustainable transport solutions'
In a statement to The Economic Times, the company expressed jubilation on bagging the tender. "We are delighted to learn that we are the lowest bidder for the prestigious tender from Convergence Energy Services Ltd. (CESL)," said a Tata Motors spokesperson. "Tata Motors is committed to providing green, safe, and sustainable transport solutions across the country. We await a formal communication from CESL."