New Delhi - Energy Efficiency Services Limited (EESL) said that it will procure 10,000 electric vehicles from automobile major Tata Motors.
According to EESL, Tata Motors was selected through an international competitive bidding aimed at increased participation.
"Tata Motors won the tender and will now supply the electric vehicles (EVs) in two phases - first 500 e-cars will be supplied to EESL in November 2017 and the rest 9,500 EVs will be delivered in the second phase," the company under the administration of central government's Ministry of Power said in a statement.
"The tender floated by EESL is the world's largest single electric vehicle procurement. Three leading manufacturers - Tata Motors, Mahindra & Mahindra (M&M) and Nissan participated in the tender."
The company disclosed that Tata Motors quoted the lowest price of Rs 10.16 lakh exclusive of GST in the competitive bidding.
"The vehicle will be provided to EESL for Rs 11.2 lakh which will be inclusive of GST and comprehensive five year warranty which is 25% below the current retail price of a similar e-car with three year warranty," the statement said.
"EESL will also identify a service provider agency. This agency, also appointed through competitive bidding, will carry out end-to-end fleet management of the procured vehicles for the concerned government customer."
EESL's plans to replace the petrol and diesel cars used by government and its agencies over a 3-4 year period.
The total number of vehicles used by the government and its agencies is estimated to be five lakh.