Centre revises norms for e-bus tenders to attract more participants

The Center has revised the qualification criteria for the largest electric bus tender to attract more participants, allowing not only manufacturers but also operators, infrastructure developers and municipal bodies to compete, according to a senior government official.

In June, the Center floated tenders for 10,900 e-buses for five cities, including Bengaluru, Delhi, Hyderabad, Surat and Ahmedabad. This is part of the ₹10,900-crore umbrella PM E drive scheme to promote the adoption of electric vehicles, which also includes electric two-wheelers, three-wheelers, ambulances, trucks and charging infrastructure.

The deadline for submitting bids has been extended twice and the last deadline will end on November 6.

The Center expects interest from Adani Group, the National Investment and Infrastructure Fund in which the government holds a 49% stake, and the Canadian pension fund. At least 6-7 original equipment manufacturers (OEMs) also attended the pre-tender meetings.

On why the Tata Group did not come out ahead in the previous rounds, the official said it was because “the burden on their balance sheets was too high” and that is why some changes have been made now.

Bus operators, infrastructure developers and municipal bodies can apply only if they connect with OEMs. OEMs will also benefit from access to finance through such consortia, the official said.

The tender, organized by Convergence Energy Services Limited (CESL), covers the acquisition, supply, operation and maintenance of the fleet, as well as the development of the associated civil and electrical infrastructure. This is based on the Gross Cost Contract (GCC) model, where the urban transport agency pays a fixed fee per kilometer to operators for the operation and maintenance of e-buses. Specific rates will be determined through a bidding process.