CESL to Provide 25,000 Electric Two-Wheelers to Andhra Pradesh Govt

State-owned EESL’s arm Convergence Energy Services Ltd (CESL) signed an agreement with the New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) to provide 25,000 electric two-wheelers in the state.

These electric vehicles (EV) will be provided to state government employees of Andhra Pradesh and the number of EVs may increase as per the requirement.

Commenting on the development, Andhra Pradesh’s Energy Minister, Balineni Srinivasa Reddy, said, “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 2-wheelers for government employees will boost energy and financial savings and we hope more and more people will also make a shift to EVs.” 

Under the agreement, both CESL and NREDCAP will work to aggregate demand, deploy EVs, and build charging infrastructure. CESL will devise a suitable payment security mechanism, which will be facilitated by NREDCAP.

Srikant Nagulapalli, Chairman, NREDCAP said, “Providing 25,000 two-wheeler EVs to government employees will be game-changing for E-mobility in the state. Apart from mitigating climate change, electric mobility is going to be a key economic growth driver and we are focused to build the e-mobility ecosystem in the state. We will encourage all government employees including cooperative societies, public sector undertakings, village, ward secretariat staff and others to opt for EVs. A bigger fleet of EVs in the government will encourage greater uptake among the masses.”

Mahua Acharya, MD & CEO, CESL said “Andhra Pradesh’s decision to go electric will accelerate E-mobility adoption in the country, hopefully providing a blueprint for other states to adopt. We are delighted to partner with NREDCAP and grateful to the Hon’ble Minister for this opportunity and look forward to achieving scale, consolidation and standardization across the ecosystem.”

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. The electric 2-wheeler will carry a standard warranty of 3 years against any manufacturing defect. Batteries too will carry warranty till 3 years or 60,000 kms whichever is earlier.