Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Saturday 14 April 2018

NOT THAT I LOVE CEAZER LESS !


Do  they  have  an  option ?

-----------------------------


Economic Times ( 13 April  ) carries following news report :






From this report , here is how I summarized this offer :


Nodal Agency………………………………………………….. ….EESL

Customers………………………………………………………….  Govt Depts / PSUs / Agencies

No of E Cars ( to replace petrol cars )…………….   500 ,000

Who will buy / own the cars ?..........................EESL

Who could be suppliers of e-cars ?...............  TATA / M&M / Nissan-Japan / BYD – China
Estimated Purchase Price / car …………………….   Rs 11.8 lakh

Arrangement between EESL and Govt Depts…  Lease

Period of Lease………………………………………………. 6 years



ROLE OF EESL

*  Float tender and buy ( and own ) , cars from e-car manufacturers

*  Hire drivers from private agencies

*  Provide 12 hr Customer Service / Emergency / Road Assistance

*  Repair and Maintenance of leased cars ( presumably , through Insurance Cover )

*  Help Depts in setting up Charging Stations



ROLE  OF  LEASING  GOVT  DEPTS

*  Buy land for Charging Stations / for parking space ( each dept , individually  ? )

*  Own charging stations and hire attendant staff

*  Pay for damages to cars for non-covered items of repair under insurance


TERMS  OF  LEASING

*  26 days per month and 8 hours per day

*  Nominal Km coverage …………………….. 80 km per day ( so , 2080 km in 26 days )

*  Charges beyond nominal usage :

    #  Rs 260 per hour exceeding 8 hour daily nominal usage

    #  Rs  3 per km beyond nominal 80 km per day

*  Lease rent …………………………Rs  40,000 per month ( Rs 20,000 if driver not supplied )

*  Charging cost to be borne by the leasing department



MY  COMMENTS

*  Finally some clarity is emerging

*  If each car runs its full permitted ( nominal ) usage of 80 km per day , that would be
    2080 km in 26 days


*  That would work out to Rs 19.2 per km ( Rs 40,000 divided by 2080 km )


*  If, in one extra hour ( beyond nominal 8 hours ) , that car covers , ( say ) 20 km ,
    then the extra cost works out to :

      #   Rs 3 / km * 20 km = Rs 60
      #   Plus , Rs 260 / hour ( for one hour )

A total of Rs 320 for going 20 km in that extra hour


That works out to Rs 16 / km ( Rs 320 divided by 20 km ) – a little less than Rs 19.2 / km of nominal lease rent


*  How does this compare with what OLA – UBER charge per km ( without having to
   worry about putting up Charging Stations / charging cost ) ?  Just  Rs 10 -15 per km !


   Why not give this option to the the govt departments ?

*  Why is EESL shying away from floating a tender for “ Leasing “ instead of “ Buying “ ?


*  I feel , if EESL were to float a “ Car Lease Tender “ , TATA / M&M etc would quote a
    lease rent of Rs 12 / km ( with driver )


    ( because they continue as “ Owners “ and can claim depreciation on car assets ,
     while filing their tax return  )


    And without driver , they would quote  Rs 6 / km ! ( Remember , EESL lease rent
   to govt department, without driver , is half : Rs 20,000 pm instead of Rs 40,000 pm )


  
*  In turn , EESL would be able to sub-lease at Rs 10 per km ( with driver )  !


 
*  Not only EESL ( owned by Central Government and funded by tax-payer money )
   would save THOUSANDS  of  CRORES of rupees, in initial investment , but the
   government will save THOUSANDS of CRORES of rupees in monthly REVENUE
   EXPENSES , if EESL were to float a “ Car Lease Tender “ !


It is still not too late for NITI Aayog to raise this question with EESL , before RaGa raises it in the Lok Sabha !


14  April  2018




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