Energy Efficiency Services (EESL) has selected Tata Motors and Hyundai Motor India in an international bidding process for procurement of 250 electric vehicles (EVs) for government entities.

The total tender value is Rs 41.6 crore. For the procurement, EESL would utilise the $5-million (around Rs 37-crore) grant recently provided to it by the Asian Development Bank.

The government's flagship energy efficiency company said it would procure the Nexons at Rs 14.86 lakh each — Rs 13,000 cheaper than its ex-showroom price. The Konas, which offer a higher range, would be procured at an 11 per cent lower price band of Rs 21.36 lakh, with a standard three-year warranty.

These EVs would replace the petrol and diesel vehicles of the Central and state governments. This is Tata Motor’s second partnership with EESL in the EV space. In 2017, the firm, along with Mahindra & Mahindra, won the first EESL tender to supply 10,000 EVs, to be used by government officials. However, a number of these vehicles could not be put to use because of low range. EESL has procured 1,547 EVs so far, of which 692 were from Tata Motors, 832 from Mahindra, and 10 each from Hyundai and MG Motor. Vehicles procured by EESL would be used to service a order of 300 long-range EVs from The Agency for Non-Conventional Energy and Rural Technology, Kerala, to be supplied in the initial phase.

Saurabh Kumar, executive vice-chairperson, EESL, said: “A shift to EVs will reduce dependence on oil imports and promote power capacity addition in India. This will greatly enhance the energy security of the country and will lead to reduction in GHG emissions from the transport sector.” He said EESL was working on rapid establishment of EV charging stations.

Shailesh Chandra, president, PV business unit, Tata Motors, said: “Partnerships such as these are pivotal for building the requisite momentum. We have been partnering with EESL and are pleased to provide more EVs for government use, enabling a smooth and sustainable transition.”

Seon Seob Kim, managing director and CEO, Hyundai Motor India, said: “Hyundai will continue to bring world class eco-friendly products and technologies for the Indian market.” The letter of award for the procurement was presented to the two companies, in the presence of Guenter Butschek, CEO & MD, Tata Motors; Chandra; and Tarun Garg, director – sales, marketing and service, Hyundai Motor India.