State-controlled Convergence Energy Services (CESL) is planning a $10-billion tender for 50,000 electric buses that will drive India’s plans to decarbonise public transport and help meet its goals for net-zero emissions.

CESL Managing Director Mahua Acharya has said that such tenders are beginning to look like infrastructure projects, and local production of electric buses is expected to grow in tandem with demand.

“This country is moving very, very rapidly on its electric vehicles ambition,” Ms Acharya has told the Bloomberg Television in an interview. “So, financing remains a challenge in as much as it presents an opportunity.” 

CESL was formed in 2020 to manage the solar and electric vehicle leasing business of its parent Energy Efficiency Services, which is a venture between four State-run energy companies. These are the key entities playing a major part in India’s plan to cut its overall projected carbon emissions by 1 billion tonnes by 2030 as a part of its goal to achieve net-zero emissions by 2070. 

As the world’s third-biggest emitter, India needs to build charging stations, improve grid capacities and redesign depots to ensure the adoption of electric vehicles, adds Ms Acharya. She has also listed ongoing shortages with battery supplies as a concern.

India could electrify all two-wheelers currently on the roads and complete the electrification of public buses in five to seven years, Ms Acharya has said. Earlier this year, CESL was awarded a contract for 5,450 electric buses on behalf of five State governments.