EESL inks deal with Andhra to make 1 lakh EVs; state to buy 10,000

With the aim of making Andhra Pradesh the hub for manufacturing electric vehicles in the country and to make the state more eco-friendly, Energy Efficiency Services Ltd (EESL) has agreed to invest close to Rs10,000 crore in the state and manufacture over 1 lakh electric vehicles over the next five years.

This also includes 4,000 electric car chargers for various departments in AP. Once the MoU is signed between EESL and the Andhra Pradesh state government, the move could see employment to over 1.05 lakh persons in state. It will see EESL supply around 10,000 electric vehicles to the AP government for official use.

EESL will invest Rs2,000 crore per year to produce the e-cars. According to a press release by the State Energy Conservation Mission chief executive A Chandra Sekhar Reddy, the EV project is aimed at transforming the State into the country's electric mobility hub.

It is estimated that the driving cost (electricity only) of electric vehicles is Rs0.89 per km against Rs4.40 per km for conventional vehicles.

Chief minister N Chandrababu Naidu has directed the energy department to prepare a comprehensive action plan to lease and use the one lakh EVs in a phased manner. The idea is to make all government departments to use EVs and expand it to the private sector later.

Naidu said, "All government departments should go for e-vehicles, and the plan would later be extended to the private sector as well. Andhra Pradesh is ranked number 1 in ease of doing business, energy efficiency, promotion of renewable energy sources, and 24x7 quality power supply. We should create a world record even in usage of e-vehicles."

Saurabh Kumar, managing director, EESL India said, "The Indian government alone has demand for half a million electric vehicles. Switching these (to electric vehicles) will stimulate demand and initiate market transformation. Enabling this transformation with an innovative business model is important to a sustainable future."

In December last year, Tata Motors delivered the first set of Tigor EVs to EESL as part of their initiative to procure 10,000 electric vehicles. The company qualified as L1 bidder in the midst of stiff competition and won the tender floated by EESL in September 2017.