India awards mobility firms $362 mln in e-bus contracts (updated)

Jbm Auto

04/01/2023 11:11

(Adds details, background)
    By Sarita Chaganti Singh
       Jan 4 (Reuters) - Ashok Leyland's  ASOK.NS  Switch
Mobility, JBM Auto  JBMA.NS  and PMI Electro Mobility are the
winners in a 30 billion Indian rupee ($362.40 million) tender
run by state-run Convergence Energy Services Ltd (CESL), two
sources said. 
    Switch Mobility emerged as the lowest bidder to supply 2,600
electric buses in three states, JBM Auto for 1,781 e-buses in
three states, and PMI Electro quoted the lowest figure to supply
2,080 electric buses in two states, the sources said.
    The companies did not immediately respond to queries sent by
Reuters.
    A senior CESL official, who did not want to be named, said
the exact quantities being awarded to the three companies would
be known by Friday.
    CESL, which aggregates demand from states for electric
buses, issued the tender on Sept. 21 last year as it sought to
supply 6,465 e-buses for six states.
    The tender was part of India's plans to deploy 50,000
e-buses in tranches over the next four-to-five years at an
estimated cost of one trillion rupees ($12 billion).  
    The prices discovered in the latest tenders are 25%-30%
higher for different categories than the last bids opened in
April last year.
    "The prices are higher as the companies have factored in
payment risks from state transport departments and also due to
lack of subsidy from the government this time," an industry
official said.
    Tata Motors  TAMO.NS , which won a major chunk of the last
contracts, did not participate in the latest bidding, citing
concerns over the poor financial condition of state transport
undertakings. 
    Reuters on Dec. 17 reported that Indian banks are reluctant
to lend to e-bus makers for supplying state transport operators.
    ($1 = 82.8180 Indian rupees)
 (Reporting by Sarita Chaganti Singh, Editing by Louise Heavens
and Barbara Lewis)
 ((Sarita.ChagantiSingh@thomsonreuters.com;))