May 18, 2024

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CESL to empanel financial institutions to offer loans for electric vehicles 

CESL to empanel financial institutions

CESL to empanel financial institutions to offer loans for electric vehicles 

Convergence Energy Services Limited (CESL) has invited expressions of interest (EoI) to empanel financial institutions for financing electric vehicles (EVs) across India. The EoI by CESL is in partnership with the state governments across India.

CESL a wholly-owned subsidiary of the Energy Efficiency Services Limited (EESL) has given the last date to submit the bids is November 10, 2021, and the bids will be opened on the same day. The pre-bid meeting will be held on October 27. The successful bidder will have a furnish amount of ₹500,000 as a bank guarantee within 28 days of receiving the empanelment letter from CESL.

As per the Gazette notification issued by the government, the incentive for electric two-wheelers has been increased to ₹15,000 per kWh, up by ₹5,000 per kWh from the earlier subsidy rate. Earlier the subsidy rate for electric two-wheelers was Rs 10,000/kWh and now it is Rs 15,000/kWh.

EESL has to implement the program and aggregate the demand for 300,000 electric three-wheelers (e-rickshaws) for multiple user segments. It is also aggregating the demand in 9 cities for electric buses under the operating expenses (OPEX) model.

The eligible and qualified financial institutions will be empanelled with CESL to provide the users with a financing solution for the electric vehicles. The financial institution should pay out a minimum of 80% of the invoiced vehicle value as a loan amount. The tenor provided by the financing institution will be a minimum of 24 months and a maximum of 60 months. The maximum cost of debt should not be greater than 20% for any borrower for any tenor. The institution should be at least ₹50 million in the last three financial years.

For the previous three financial years, the average assets under management should be at least ₹100 million. The net worth of the bidder should not be less than 100% of the paid-up share capital. 25% of the tendered quantity is reserved for micro and small enterprise (MSE) suppliers.

The CESL is managing the solar and mobility portfolios of EESL. It had announced that it has planned solar-powered charging stations for electric vehicles all over India. The CESL invited bids for setting up a solar PV-based electric carport and rooftop power plant at Leh, Ladakh.

The CESL invited online bids to set up a 242 kW solar carport and rooftop solar system with a lithium-based battery energy storage system (BESS) of capacity 762 kWh with five years of operation & maintenance (O&M). The last date for submitting bids is August 13, 2021, and the bids would be opened on the same day. The bidders are expected to pay ₹20,000 for the cost of the bid document.

Also read related article: CESL opens tenders for 100,000 light electric vehicles

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Mastered in Journalism and I am a dedicated writer for since 2018. I am an EV enthusiast. I love to write about electric vehicles, technology, startups, people, fashion, and trends. Through my writings, I love to contribute to my team's efforts to reduce the pollution levels in the world, especially from India.

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