{"id":1244947,"date":"2023-04-24T10:02:15","date_gmt":"2023-04-24T04:32:15","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1244947"},"modified":"2023-04-24T10:02:48","modified_gmt":"2023-04-24T04:32:48","slug":"setback-for-ev-push-leading-electric-bus-makers-refuse-to-bid-for-govt-contracts-but-why","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/setback-for-ev-push-leading-electric-bus-makers-refuse-to-bid-for-govt-contracts-but-why\/","title":{"rendered":"Setback For EV Push: Leading Electric Bus Makers Refuse To Bid For Govt Contracts (But Why?)"},"content":{"rendered":"\n<p>India&#8217;s large bus makers including Tata Motors, JBM Auto and PMI Electro have not bid for the latest government contract to supply nearly 5,000 electric buses amid fears of not getting paid on time.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/04\/Untitled-design-39-1280x720-1024x576-1.jpeg\" alt=\"Setback For EV Push: Leading Electric Bus Makers Refuse To Bid For Govt Contracts (But Why?)\" class=\"wp-image-1244955\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/04\/Untitled-design-39-1280x720-1024x576-1.jpeg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/04\/Untitled-design-39-1280x720-1024x576-1-300x169.jpeg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/04\/Untitled-design-39-1280x720-1024x576-1-768x432.jpeg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Electric public transport ambitions hit<\/strong><\/p>\n\n\n\n<p>Some companies have also stayed away because of new labour clauses in the tender documents.<\/p>\n\n\n\n<p>This is a hurdle to India&#8217;s efforts to curb vehicular pollution by electrifying its public transport.<\/p>\n\n\n\n<p>Modi&#8217;s government wants to deploy 50,000electric buses countrywide over the next few years which is estimated to cost $12 billion.<\/p>\n\n\n\n<p><strong>First two tenders<\/strong><\/p>\n\n\n\n<p>To do this, it is aggregating demand from state governments and issuing contracts or tenders which companies are invited to bid.<\/p>\n\n\n\n<p>In the first two tenders for about 11,000 electric buses the government received bids from major bus makers including Tata, JBM, Ashok Leyland, PMI Electro and Olectra Greentech, which has partnered with China&#8217;s BYD.<\/p>\n\n\n\n<p><strong>Issue of delayed payments<\/strong><\/p>\n\n\n\n<p>While there have been no payment issues so far, the state transport corporations have previously delayed payments to bus makers when procuring combustion engine vehicles.<\/p>\n\n\n\n<p>The third tender for 4,675 buses opened in January and closed this week but got bids from only one Indian EV startup &#8211; Eka Mobility-owned Pune-based Pinnacle Industries.<\/p>\n\n\n\n<p><strong>Heavy risks<\/strong><\/p>\n\n\n\n<p>Payments are typically made over a 12-year period and given the poor state of state transport corporations&#8217; finances, this is a big risk.<\/p>\n\n\n\n<p>&#8220;Until there is some kind of guarantee or mechanism in place it will be difficult to participate,&#8221; a source added.<\/p>\n\n\n\n<p>In addition to the finances, another problem is a &#8220;dry lease&#8221; under which the companies provide buses to the state transport corporations and the bus drivers and conductors are deployed by the state.<\/p>\n\n\n\n<p><strong>Maintenance concerns<\/strong><\/p>\n\n\n\n<p>In earlier contracts, the companies provided the staff as well.<\/p>\n\n\n\n<p>&#8220;Drivers and conductors are considered as important an asset as the bus and in the case of a dry lease contract, we have no control over the asset,&#8221; one company official said..<\/p>\n\n\n\n<p>Whether the driver would maintain the bus properly is a big concern.<\/p>\n\n\n\n<p><strong>Poor financial health<\/strong><\/p>\n\n\n\n<p>Most Indian state transport corporations have poor finances since they are often forced to keep fares low while being overstaffed.<\/p>\n\n\n\n<p>They are controlled by strong trade unions that resist privatisation and layoffs.<\/p>\n\n\n\n<p><strong>Timeline extended<\/strong><\/p>\n\n\n\n<p>Indian banks are also reluctant to lend.&nbsp;<\/p>\n\n\n\n<p>CESL has started consultations with e-bus makers to smooth out problems and has <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/indian-bus-makers-shun-government-contracts-over-payment-labour-concerns-report-10456221.html\/amp?utm_campaign=fullarticle&amp;utm_medium=referral&amp;utm_source=inshorts\">extended <\/a>the timeline to submit bids till month-end.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s large bus makers including Tata Motors, JBM Auto and PMI Electro have not bid for the latest government contract to supply nearly 5,000 electric buses amid fears of not getting paid on time. Electric public transport ambitions hit Some companies have also stayed away because of new labour clauses in the tender documents. This [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":1244955,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1434,1435,164],"class_list":["post-1244947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-electric-bus","tag-jbm-auto","tag-tata"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Setback For EV Push: Leading Electric Bus Makers Refuse To Bid For Govt Contracts (But Why?) - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/setback-for-ev-push-leading-electric-bus-makers-refuse-to-bid-for-govt-contracts-but-why\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Setback For EV Push: Leading Electric Bus Makers Refuse To Bid For Govt Contracts (But Why?) - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"India&#8217;s large bus makers including Tata Motors, JBM Auto and PMI Electro have not bid for the latest government contract to supply nearly 5,000 electric buses amid fears of not getting paid on time. 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