World's largest EV procurement: EESL ready to offer 40% order to Mahindra, but it comes with a rider

Despite having India's one and only electric vehicle brand under its umbrella, Mahindra & Mahindra (M&M) failed to stop Tata Motors from winning the bid to supply 10,000 electric vehicles for India government recently. However, Energy Efficiency Services Ltd (EESL),  a venture set up under Ministry of Power to facilitate implementation of energy efficiency projects, is ready to give a second chance to Mahindra.

Tata Motors won the bid by offering EV for Rs 11.2 lakh which will be inclusive of GST and comprehensive five-year warranty. EESL is now ready to give 40 percent of the total order of 10,000 e-vehicles to M&M provided it matches the Tata's bid.

"Following due procedure, we have written to Mahindra today, asking them to match Tata's bid," said Saurabh Kumar, managing director at EESL. "Now, Mahindra, which was the second-lowest bidder offering e-cars for around Rs 13 lakh each, stands a chance to win 40 percent of the order, if it matches Tata's offer," Economic Times quoted Kumar as saying.

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EESL has given the company a week's time to respond to it's offer. "If they don't respond in a week, we will send them a reminder," Kumar added. "By the middle of this month, we should be able to close the deal."

M&M currently sells its electric vehicles via dedicated brand, Mahindra Electric. The range includes E2oPlus hatchback, eVerito sedan and the eSupro van. M&M was also tipped as the highly probable winner of the bid.  

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EESL floated a global tender for 10,000 e-vehicles in August. Apart from Tata Motors and M&M, Nissan was also in the race. EESL plans to replace the fossil-fuelled cars used by government and its agencies over a 3-4 year period. In this mission, around five lakh cars need to be replaced.