CESL to Lease 3,500 Electric Cars, Invites Bids

The bids will be opened on January 20, 2023


Convergence Energy Services (CESL), a wholly-owned subsidiary of Energy Efficiency Services (ESSL), has invited price bids to lease 3,500 electric four-wheelers (cars) to various departments and autonomous bodies across 18 States and Union Territories for 3-5 years.

The last date for the submission of the bids is January 20, 2023. Bids will be opened on the same day.

CESL will provide the demand aggregated by it for electric cars. Financiers have to purchase the vehicles and lease them to CESL or the government partner for a defined period of time, the company said in a statement.

Further, CESL will charge a service fee for making available the aggregated demand for cars.

Through the tender, CESL will also hire a fleet management agency to deploy the e-cars across India.

Original equipment manufacturers, leasing agencies, and non-banking financial corporations can submit their proposals for the aggregation of e-cars.

The cost of the bidding document is ₹25,000 (~$303).

Bidders must submit a performance security equivalent to 3% of the total contract price within 28 days of receiving the letter of award.

CESL has appointed Noida-based C1 India as the implementation agency to carry out the e-procurement process.

The requirements pertaining to the earnest money deposit (EMD), experience in handling electric vehicle fleets, and the average annual turnover is in the table below:

EESL Tender

The state authority or the department concerned will be responsible for providing the dedicated locations, space, and all the approvals for the installation of charging stations.

A section of medium and small enterprises (MSEs) has been exempted from paying the tender document fee, bid security, and EMD. The MSEs will qualify for the exemption only if they are registered with one of the 8 agencies as notified by the government.

According to the tender document, 25% of the annual procurement target has been earmarked for MSEs registered with the 8 agencies, of which 4% and 3% would be earmarked for procurement from MSEs owned by scheduled caste and scheduled tribe entrepreneurs and women, respectively.

MSEs falling within the price band of L1+15% category will also be eligible to supply 25% of the total tendered quantity by lowering their prices to L1 prices. In case there is more than one such firm, they will be allowed to proportionately share the quantity, based on the L1 price.

The scope of work requires the selected agency to supply spare parts for the operation and maintenance of the facilities. The contractor or the agency must design, manufacture, install, and complete the facilities.

The winning agency must ensure that the spares recommended are fit for 3 years of operation and the same is quoted in the price.

The agency must also guarantee the long-term availability of spares to CESL for the full life of equipment covered under the contract.

Earlier this month, CESL issued a tender to select electric-bus operators for the procurement, supply, and maintenance of 4,675 e-buses.

Last October, CESL issued an expression of interest to empanel financial institutions to finance electric vehicles in partnership with various state governments in India.