Andhra Pradesh Floats Tender to Procure 350 Electric Buses

The buses are expected to be procured on a gross cost contract basis


The Andhra Pradesh state government is looking to deploy electric buses on specific routes in the state. To this end, the Andhra Pradesh State Road Transport Corporation (APSRTC) has issued a tender to procure 350 air-conditioned electric buses under the Phase-II of Faster Adoption and Manufacturing of Electric Vehicles (FAME) India program.

In March 2019, the Union Cabinet approved the proposal to implement a program titled ‘Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)’ aimed towards the promotion of electric mobility in the country.

The buses are expected to be procured on a gross cost contract (GCC) basis. Bidders will also be responsible for the operation and maintenance of the buses. The scope of work will also include the procurement and installation of an 11 kV substation, charging stations, related equipment, and maintenance.

APSRTC is looking to procure buses of sizes 9 meters (m) and 12m, and it will provide demand incentives as per the FAME India guidelines as well. The buses will be contracted for 12 years.

The last date for the submission of bids for this tender is October 14, 2019.

Earlier this year, Andhra Pradesh Economic Development Board (APEDB) and Urja Global have signed a memorandum of understanding (MoU) for setting up manufacturing units of lithium-ion batteries and electric vehicles for the development of electric mobility ecosystem. Under the MoU, Urja Global has agreed to invest ₹2 billion (~$28.55 million) which will create 250 direct and 1,000 indirect job opportunities. The manufacturing units will be set up at Anantapur, Nellore, and Chittoor in Andhra Pradesh.

Last month, Amara Raja, a manufacturer in the Indian battery storage industry space, launched electric vehicle charging stations and battery swapping stations in collaboration with Tirupati Municipal Corporation. Amara Raja Batteries set up EV these stations in the temple town of Tirupati in Andhra Pradesh along with a fleet of electric auto-rickshaws (e-autos) as part of the Smart Cities program.

In July 2019, the 36th Goods and Services Tax (GST) Council meeting, chaired by Finance Minister Nirmala Sitharaman, decided that GST rate on all the electric vehicles be reduced from 12% to 5%.

Shaurya is a staff reporter at with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.