Convergence Energy Services (CESL), a wholly owned subsidiary of Energy Efficiency Services (EESL), and Three Wheels United (TWU), a global fintech company specialised in EV financing, have signed a Memorandum of Understanding (MoU) to procure 70,000 electric three-wheelers (e3Ws) to be deployed in multiple phases across India over a period of five years.
Initially procured e3Ws, priced at an average of INR 3 to 3.5 lakh, will be deployed in Bengaluru and Delhi. TWU will then expand to other cities as well, noted Cedrick Tandong, Co-founder & CEO, TWU.
Vehicles will receive a subsidy from the FAME II programme administered by the Ministry of Heavy Industries to the extent eligible. This arrangement comes as a result of the 100,000-vehicle tender managed by CESL in response to a notification in the Gazette of India to aggregate demand for electric three-wheelers. TWU had the largest purchase requirement of vehicles.
As per the agreement, TWU will procure the vehicles in multiple lots – varying from 100 to 20,000 units – to complete the entire process outlined in the MoU by 2027, noted Mahua Acharya, MD and CEO, CESL. She said, “We also hope that partnerships such as these create the precedence needed in the country for the entry of mainline financing in last mile connectivity.”
Tandong added, “We are happy to be partnering with a like-minded organisation like CESL that is focused on solutions that deliver clean, affordable, and reliable energy. This partnership further strengthens our commitment towards eradicating barriers to mass adoption of EVs in India.”
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