CESL floats bids for financing EVs

Convergence Energy Services Limited (CESL) has released a request for proposals to appoint financial institutions to finance electric vehicles (EV) in collaboration with state governments. The scope of the project entails accepting and assessing borrower applications while finalising evaluation standards in accordance with financing EVs policies. The financing term will be a minimum of 24 months and maximum of 60 months.

After empanelment, the financial institutions will be contracted until March 31, 2024. Within 28 days of receiving the empanelment letter, the empanelled financial institution must provide a performance bank guarantee of Rs 50,000.

During the previous three financial years, the average annual turnover of the participating financial institutions must have been greater than Rs 6 million. Throughout the time of the financing, the EV to be financed will be insured. All financed vehicles must use lithium-ion batteries and come with standard product warranties. Participating financial institutions must be scheduled commercial banks, public financial institutions registered under Section 4A of the Companies Act 1956, or non-banking financial companies registered with the Reserve Bank of India. The bid submission deadline is October 19, 2022.

Recently in September 2022, under the National E-Bus Program (Phase-I), CESL floated bids to choose bus operators for the procurement, operations and maintenance of 5,690 electric buses. The project also includes development of allied electric and civil infrastructure.