Tender Floated to Deploy 5,585 Electric Buses Across Five Major Cities

The last date to submit the bids online is March 7, 2022


Convergence Energy Services Limited (CESL), a wholly-owned subsidiary of Energy Efficiency Services Limited (EESL), has invited bids under the ‘Grand Challenge’ program to select bus operators for the procurement, operation, and maintenance of 5,450 electric buses, 135 double-decker electric buses, and allied electric and civil infrastructure on gross cost contract.

‘Grand Challenge’ program by the EESL brought out a set of homogenized demand for electric buses aggregated across major cities – Delhi, Kolkata, Bangalore, Hyderabad, and Surat. The program aims at helping cities reduce their operating costs for public transportation and simplifying the procurement of e-buses.

The last date to submit the bids online is March 7, 2022. Bids will be opened on the same day.

Bidders will have to submit ₹500 million (~$6.72 million) as an earnest money deposit. The successful bidder will have to furnish 3% of the contract price as the performance bank guarantee within 28 days.

The selected bidder will supply buses under the operating expenses (OPEX) model with an annual assured bus kilometer of 70,000 km per bus for 12 years for 12 m and 9 m buses. The buses will be in operation for 12 years or 10,000 km, whichever is earlier. The minimum fleet availability factor will be 95%.

CESL Final-2

The selected bidder will be responsible for the operation and maintenance of buses.

The selected bidder will be responsible for setting up bus maintenance facilities at depots and downstream infrastructure beyond 415 V connection, including all-electric and civil infrastructure along with service equipment, tools, and facilities as may be required for the day-to-day operation of the buses.

CESL Final-1

The selected bidder will also be responsible for setting up operations and charging facilities at the depot for a minimum of 90 buses per depot, including opportunity charging infrastructure. The opportunity charging will be available for a maximum of 60 minutes as per the state transport utility (STU) schedule.

CESL Final-3

To participate in the bidding process, the bidder should be a single bidder or consortium of a maximum of three members led by a lead bidder.

The bidder should have manufactured and delivered at least 25 electric buses or 1,000 CNG buses as of date. The bidder should have delivered the entire order received of electric buses within the stipulated timeline prescribed under the agreement in the last three financial years (FY).

The bidder’s minimum average annual turnover for the best three years out of the last five years should be equal to or more than ₹16 billion (~$241.96 million).

The net worth of the bidder in the last financial year should be at least 100% of the paid-up share capital.

The maximum incentive available for buses (length 12 m) under Phase-II of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) program is ₹5.5 million (~$73,894), and for midi-buses (length 9 m) is ₹4.5 million (~$60,458). The demand incentive will be available at 40% of the estimated cost of the bus.

CESL has stated that preference will be given to micro and small enterprises (MSEs). Out of the total quantity, 25% has been earmarked for MSEs. Of the 25%, 4% and 3% have been allocated for procurement from MSEs owned by Scheduled Caste (SC) and Scheduled Tribes (ST), and MSEs owned by women entrepreneurs.

If the prices quoted by MSEs fall within the price band of L1+15%, such MSE will be allowed to supply 25% of the total tendered quantity by bringing down their prices to match the L1 price. In the case of more than one such Mse, the supply will be shared proportionately, subject to the condition, given that such MSEs match the L1 price.

If the bidder fails to supply the order within the stipulated time, he will have to pay 0.5% of the value of the delayed equipment for each week of delay, subject to 5% of the total contract value.

Last December, CESL invited bids to empanel vendors to lease an estimated 1,000 electric four-wheelers for various government departments and other clients across India.

Earlier, CESL had invited expressions of interest to empanel financial institutions for financing EVs across India.

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