The Maharashtra government has approached Energy Efficiency Services Ltd (EESL), the central government undertaking, for the procurement of electric cars. As a pilot project, the state public works department (PWD) has identified 83 ageing vehicles, out of its total fleet of 3,000 vehicles across Maharashtra, to be replaced by electric cars.
The department is expected to sign a Memorandum of Understanding with EESL soon. Meanwhile, other departments in the state have started preparing a list of ageing cars which need replacing. Maharashtra, Andhra Pradesh and Telangana are currently the only states that have formally initiated a dialogue with EESL for the procurement of electric cars.
An official from the state PWD told DNA, "The department's outgo towards fuel and maintenance of its 3,000 vehicles comes up to Rs 18 crore per month which can be substantially reduced in phases." EESL has estimated the cost for outright purchase at Rs 11.8 lakh per vehicle while the operational cost comes to Rs 1.25 per km at the electricity tariff of Rs 9.50 per unit, which is relatively more cost-effective according to the official. "The department will have to make deferred payment in five years," added the official. Out of the 83 vehicles which are to be scrapped, 64 are jeeps and 19 are cars. Once charged, the electric car can run for eight hours at a stretch and cover 170 km.
An official from EESL spoke of the options available to Maharashtra and the other states, "EESL can supply brand new electric cars, chauffeur service and pick-up and drop cars to government departments, public sector undertakings and agencies. Apart from this, EESL can provide 24/7 emergency roadside assistance for all cars in the electric car fleet." The official added that EESL's talks with the Maharashtra government are at an advance stage.
According to the official from EESL, the Central government has approximately 5 lakh vehicles which can generate a demand of about 4,000 MW batteries which would attract battery producers to set up manufacturing plants in the country. EESL has an aggregated demand for 10,000 electric vehicles with a range of 130 km per charge.