Central Government Issues Tender To Supply 4,675 e-Buses

Bids have to be submitted by February 20, 2023


Convergence Energy Services (CESL), a wholly-owned subsidiary of Energy Efficiency Services (EESL) has issued a tender to select bus operators for the procurement, supply, and maintenance of 4,675 electric buses.

The terms in the tender also include the development of allied electric and civil infrastructure on dry lease under the National E-Bus Program (NEBP) Phase II.

Bids have to be submitted by February 20, 2023. They will be opened on the same day.

The selected bidders must furnish performance security equivalent to 3% of the total contract price within 28 days of receiving the letter of award.

Further, the bidders must submit the Earnest Money Deposit (EMD) in the form of Insurance Security Bonds, depending on the make of the e-buses.

The tender mandates a range of minimum average annual turnover (MAAT) for the eligibility of bidders. It varies from the lot type under which a bid has been placed as is represented in the table below.

CESL E-bus tender requirements

The bidders participating in the tender must be any of the following: an original equipment manufacturer (OEM), an operating subsidiary of an OEM, a financial aggregator or an operator that doesn’t have to be related to an OEM.

While an OEM or an operating subsidiary of an OEM can participate in the bid as a single bidder, a financial aggregator must form a consortium with an OEM or OEM subsidiary to participate in the tender.

Further, as a lead bidder, the financial aggregator or operator will have to enter into a tripartite agreement with the respective state transport undertakings for the complete period of the contract.

The scope of work for the successful bidder requires the OEM to cover all applicable warranties of battery and technologies for the entire duration of the contract.

Further, the OEMs or their subsidiaries participating in the tender as a single bidder or as a member of a consortium should have manufactured and delivered at least 25 e-buses or 1,000 CNG buses to date, in India or outside the country.

The OEMs should have completed testing and certification requirements under Central Motor Vehicle Rules 1989, of at least one tendered product which includes a 7-meter, 9-meter, or 12-meter e-bus, all of which must be fully battery operated.

Earlier this month, CESL said that the prices discovered for the largest e-bus tender comprising 6,465 electric buses under the first phase of NEBP were 29% lower than the diesel vehicles.

In October 2022, CESL issued an expression of interest to empanel financial institutions to finance electric vehicles in the country, in partnership with state governments.