State-controlled Convergence Energy Services Ltd. is planning a $10-billion tender for 50,000 electric buses that will drive India’s plans to decarbonize public transport and help meet its goals for net zero emissions.
CESL Managing Director Mahua Acharya said such tenders are beginning to look like infrastructure projects and local production of electric buses is expected to grow in tandem with demand.
“This country is moving very very rapidly on its electric vehicles ambition,” Acharya told Bloomberg Television in an interview. “So financing remains a challenge in as much as it presents an opportunity.”
CESL was formed in 2020 to manage the solar and electric vehicle leasing business of its parent Energy Efficiency Services Ltd., which is a venture between four state-run energy companies. These are the key firms playing a major part in India’s plan to cut its overall projected carbon emissions by 1 billion tones by 2030 as part of its goal to achieve net zero emissions by 2070.
As world’s third-biggest emitter, India needs to build charging stations, improve grid capacities and redesign depots to ensure the adoption of electric vehicles, said Acharya. She also listed ongoing shortages with battery supplies as a concern.
India could electrify all two-wheelers currently on the roads and complete the electrification of public buses in five to seven years, Acharya said. Earlier this year CESL awarded a contract for 5,450 electric buses on behalf of five state governments. CESL is still looking for investors for its distributed solar businesses which it is funding internally at the moment, Acharya said.