Pact signed with CESL for supplying the vehicles
The State government, through the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), will procure 25,000 Electric Vehicles (EV, two-wheelers) to provide them to its employees.
Vice-Chairman and Managing Director, NREDCAP, S. Ramana Reddy signed an agreement with Mahua Acharya, CEO and Managing Director of Convergence Energy Services Limited (CESL), a government of India company under Ministry of Power, on Tuesday. The number of vehicles proposed to be procured may increase, depending on the requirement.
“Our vision is to make the State go electric. We have been providing affordable and clean power and a fillip to e-mobility will make a further push towards clean energy adoption,” said Energy Minister Balineni Srinivasa Reddy, adding: “The move will boost energy and financial savings and we hope that more people will make a shift to EVs.”
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.
Chairman, NREDCAP Srikant Nagulapalli said this would prove to be a game-changer for e-mobility in the State. Apart from mitigating climate change, electric mobility would be a key economic growth driver and the government was focussed on building the e-mobility ecosystem in the State, he said.
Ms. Acharya said Andhra Pradesh’s decision to go electric would accelerate e-mobility adoption in the country, “hopefully providing a blueprint for other states to adopt. We are delighted to partner with NREDCAP and look forward to achieving scale, consolidation and standardisation across the ecosystem.”
The electric vehicles 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. They would carry a standard warranty of 3 years against any manufacturing defect and batteries will also carry warranty till 3 years or 60,000 km, whichever is earlier.
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