Energy Efficiency Services (EESL) plans to open up vehicle leasing programmes to private institutions in its push towards vehicular electrification.
The firm, which recently awarded a tender for procuring 10,000 electric vehicles (EVs), said the contract was the first of many as there are over half a million vehicles with the Centre waiting to be replaced with those equipped with electric power trains. There are also opportunities in the corporate market for leasing EVs.
EESL managing director Saurabh Kumar told ET, “We may open up to private institutions… They can set up charging points for vehicles leased in the company name and in that way avoid regulatory hurdles over the sale of electricity.”
At present, the Electricity Act prohibits the sale of electricity by anyone except the distribution licensee. If a private firm sets up charging points for vehicles leased under the company name for use by employees, the regulatory hurdle can be eased and at the same time, environmental concerns will stand addressed.
“We have specified a minimum range of 130 km for the EVs we are procuring in the tender. Most vehicles used in intra-city operations cover a daily distance of 80 km. Corporates can have charging stations in offices for powering leased vehicles when idle. Even after taking the tariff for electricity into account, the operating cost of an EV is one-sixth of that of a petrol one,” Kumar added.
Bulk acquisition of EVs by EESL, Kumar said, would help bring down purchase price and spur demand. “Leasing will work in the commercial space. And also help bring down procurement costs,” said VG Ramakrishnan, managing partner, Avanteum Partners LLP.
Overall, EESL plans to acquire 10000 electric vehicles for replacing the fleet in the power, coal, new and renewable energy ministries by June 2018. Read more