Andhra Pradesh to buy 25,000 electric two-wheelers for government employees

Convergence Energy Services Ltd (CESL), a government of India company under the Ministry of Power, has signed an agreement with New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) to provide 25,000 electric two-wheelers in the state. These EVs are to be provided to state government employees of Andhra Pradesh. It is likely number of EVs may increase in future.

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

Andhra Pradesh’s Energy Minister, Balineni Srinivasa Reddy said: “Our vision, with the procurement of 25,000 electric two-wheelers 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.” 

Sri 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.”

Ms Mahua Acharya, MD and 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 minister for this opportunity and look forward to achieving scale, consolidation and standardization across the ecosystem.”

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.