Sunday, 1 October 2017

FW: NATION WANTS TO KNOW


From: Hemen Parekh


Sent: 01 October 2017 11:18

To: Cabinet Ministers

Cc: 'ssbhalla@gmail.com'; 'ceo-niti@nic.in'; BJP National Executive; 'bibek.debroy@gov.in'; 'ashima@igidr.ac.in'; 'rathin@nipfp.org.in'; 'rr1@nipfp.org.in'; 'ratanp.watal@gov.in'; 'Gurudatt Kundapurkar'; Hemen Parekh; TV Anchors; 'skumar@eesl.co.in.'; vdwivedi@eesl.co.in; jsaujla@eesl.co.in


Subject: NATION WANTS TO KNOW

Waiting  to  be  proved  wrong !
===========

In my earlier blog :




I had assumed following figures :


·         ALL government departmental cars are driver driven
·          

·         Run ( max ) of 100 km per day ( 20,000 km in 200 working days )
·          

·         At 12,000 km / year , total cost ( fixed + variable ) per km works out to Rs 22 , for a self driven petrol car ( no salary of a chauffer ) -  CRISIL Research Study
·          

·         It would be safe to assume that this would be Rs 25 / km for an Electric car
·          

As against this , cost of hailing a UBER / OLA works out to Rs 19 / km  !



Now consider these assumptions in light of the following :


·         Two days back , EESL placed a order for purchase of 10,000 electric cars , at Rs 11.2 lakh each ( Total Value = Rs 1,120 crore )
·          

·         EESL will lease out these cars to Government Departments / Agencies , at a lease rent of Rs 45,000 per month ( Rs 540,000 per year ) – which , I assume , does not include a driver ( Hindustan Times / 30 Sept )
·          

·         So , that works out to Rs 27 per km ,( for 20,000 km / year ) , for the leasing department , without the salary of the driver
·          


·         If the salary of that “ departmental driver “ is ( say ) Rs 300,000 per year ( Rs 25,000 per month , inclusive of all perks / retirement benefits / leave etc ) , then that would add another Rs 15 / km for annual 200,00  km
·          

·         So , the total cost to the government department leasing the car from EESL , adds up to Rs 42 / km ( Rs 27 + Rs 15 )
·          

QUESTIONS :



If my assumptions are correct ( I look forward to EESL proving me wrong ! ), then following questions arise :


#   Why should government departments incur a cost / km of Rs 42 , when it could
     hire a UBER / OLA , for Rs 19 / km An extra of Rs 23 / km !


#   Eventually , when EESL manages to replace existing 500,000 government owned
    ( petrol / diesel ) cars with Electric Cars , this extra cost could add up to Rs
     2,300 Crore/year (5 Lakh cars * 20,000 km per year * Rs 23 / km difference )

     
     Is this justified by saying : Since EESL is a government-owned company , this is
     only transferring the money from one pocket to another :  ?


#   As per report in Hindustan Times ( 30 Sept ) , Government departments are
     currently paying Rs 50,000 per month for leasing cars from private agencies
    ( about 150,000 cars , out of a total of 500,000 cars )


    Is it not entirely possible – and nearly certain – that , if EESL tender was for “
    Leasing  instead of Buying “ , TATA and M&M , would have quoted Rs 15 per
    km ( inclusive of a driver ) , thereby saving the government , Rs 2,700 crore per
    year   ( 5 lakh cars * 20,000  km/year * Rs 27 / km : :  Rs 42 – Rs 15 )  ?


#   Cost of Lithium-ion Battery constitutes between 50 % - 70 % of the Selling Price
    of an Electric car . And this cost is dipping by approx. 20 % per year


    So , the cost of that battery ( to TATA ) must be around Rs 6 lakh today , out of
   its quoted price of Rs 11.2 lakh per car


   Now , if  5,000 cars are likely to be delivered in 2018 and remaining 5,000 in 2019
   then the battery costs would drop to below Rs  5 lakh by 2019


   Did the EESL incorporate a “ PRICE   DE-ESCALATION  CLAUSE “ , in its tender ?


I hope Arnab Goswami ( or anchor of any other TV Channel ) gets to read this and then say :

NATION  WANTS  TO  KNOW  !



Oct  2017
     www.hemenparekh.in / blogs

   

   

   


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