CESL floats tender for procurement of ~5,500 electric buses

News: As per media sources, government owned entity i.e. CESL (Convergence Energy Services Ltd) has floated a tender for procurement of ~5,500 electric buses. CESL is procuring these buses on behalf of state transport undertakings (STU) of 5 cities i.e. Delhi, Bengaluru, Kolkata, Hyderabad and Surat with total order size pegged at ~Rs. 5,500 crore and likely roll out by July 2022.

Views: This will form the single biggest order in the electric mobility domain in public passenger vehicle segment. STU’s plan to operate these buses on the Opex model (|/km basis). The likely beneficiaries of this move would be Tata Motors and Ashok Leyland in our coverage universe & JBM Auto and Olectra Greentech outside our coverage universe. 

Impact: Positive