State-controlled Convergence Energy Services Ltd is planning a $10 billion tender for 50,000 electric buses that will lead India's plans to decarbonize public transport and help meet its net-zero emissions targets.
Mahua Acharya, managing director of CESL, said such tenders are beginning to resemble infrastructure projects and local production of electric buses is expected to grow along with demand.
"This country is moving very fast in terms of electric vehicle ambition. So financing remains both a challenge and an opportunity," Acharya told Bloomberg TV in an interview.
CESL was formed in 2020 to manage the solar and electric vehicle rental business of its parent company Energy Efficiency Services Ltd. It is a joint venture between four state-owned energy companies. These are the key companies playing a key role in India's plan to reduce its projected total carbon emissions by 1 billion tonnes by 2030 as part of its goal of achieving net-zero emissions by 2070.
As the world's third-largest emitter, Acharya said, India needs to build charging stations, improve network capabilities and redesign warehouses to ensure adoption of electric vehicles. He also mentioned the continuing shortage of battery supplies as a concern.
Acharya said that India could electrify all two-wheelers currently on the roads and complete the electrification of public buses within five to seven years. Earlier this year, CESL awarded a contract for 5,450 electric buses on behalf of five state governments.
Acharya said that CESL is still looking for investors for its distributed solar business, which is currently financed internally.