CESL To Supply 25000 Electric Two Wheelers To New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP)

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Convergence Energy Services Ltd (CESL) will be supplying 25,000 electric two-wheelers to New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) for the state government employees. In a joint statement, the 2 companies said that the Electric 2-Wheelers will be provided on a monthly lease inclusive of a comprehensive insurance that will be deducted as EMI from the volunteering government employee’s account. These electric vehicles will be provided to state government employees of Andhra Pradesh and the number may increase as per requirements. 

CESL is  a unit of Energy Efficiency Services Ltd (EESL) which is a joint venture of NTPC Ltd, Rural Electrification Corp. Ltd, Power Finance Corp. Ltd and Power Grid Corp. of India Ltd. 

The statement also mentioned that under the agreement CESL and NREDCAP will work to aggregate demand, deploy electric vehicles, and build charging infrastructure. CESL will devise a suitable payment security mechanism, which will be facilitated by NREDCAP. Under the new scheme, CESL aims to have 200,000 two-wheeled EVs and 300,000 three-wheeled EVs across India. It plans to halve the cost of ownership of these vehicles through incentives offered under phase 2 of the Union government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Fame) scheme, state government subsidies, support from EV makers and carbon credits that will be earned under the United Nations’ Clean Development Mechanism (CDM). 

Andhra Pradesh’s energy minister Balineni Srinivasa Reddy said in the statement – “Our vision, with the procurement of 25,000 two-wheeler electric vehicles, is to make Andhra Pradesh go electric. We have been effectively providing affordable and clean power and a fillip to e-mobility will make a further push towards clean energy adoption. Electric two-wheelers for government employees will boost energy and financial savings and we hope more and more people will also make a shift to EVs.”

Mahua Acharya, CESL’s chief executive and managing director, said in the statement – “Andhra Pradesh’s decision to go electric will accelerate e-mobility adoption in the country, hopefully providing a blueprint for other states to adopt.”

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