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

Wednesday, 26 December 2018

THANK YOU , SHRI JAITLEYJI


Thank You , Shri Jaitleyji,

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


Extract :

·      The finance minister has asked all government departments to switch over from petrol and diesel to electric vehicles while hiring cars…


·      In recent years, to cut down on manpower and maintenance costs, government departments have opted to lease vehicles….

·      ….. and has a lower operating cost, the expenditure department said in a note to other government departments 

·      North Block has issued the circular and also attached  a revamped lease agreement  ……….

·      Government’s own experiment to lease 10,000 electric vehicle from public sector Energy Efficiency Sevices Limited ( EESL ) has not fully taken off


·      In fact a second tender for vehicles from companies such as TATA and Mahindra has not been issued as the manufacturers are yet to complete the first order

·      Further, officials pointed out that the charging infrastructure is inadequate with only a few chargers in NITI Aayog and just one point in Udyog Bhavan and a few other government offices 

·      Before cars are leased, a network of chargers will have to be put in place ….


=========================================================


Since Aug 2017 , I have sent 16 e-mails to the Cabinet Ministers / NITI Aayog / EESL etc, urging that,

·       EESL itself should modify its first tender ( for 10,000 Electric Cars ) from  outright “ purchase “ to “ Wet Lease


Main advantages of wet-leasing :


·      Saving of initial capital outlay of Rs 1200 crore ( for 10,000 cars )

Over the next 4 years, EESL plans to replace the entire govt fleet of 500,000 petrol / diesel cars with Electric cars


·      Big saving in operating cost ( Rs / km )


·      No need to worry about setting up Charging Network

    ( - this will happen only if the lease rent is stipulated  in “ Rs / km “  and not “ Rs /
     month “ . Under such terms , TATA / M&M will rush to set up a wide network of
     charging stations to ensure that their leased cars do not run out of charge and idle  )


·      No worry about driver absenteeism / leave replacement


The details of advantages are explained at length in my last email :

EESL : It is your move now !    …………………………………………………………..[  12  Oct  2018  ]


Now Shri Jaitleyji is a highly cultured and polite person

He will not say :      “  EESL , I want you to opt for leasing “

He is more likely to say :   “ Saurabh Kumarji, I request you to examine the leasing option “

=========================================================
26  Dec  2018

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Friday, October 12, 2018 4:58 PM
To: 'Cabinet Ministers'; 'assocham@nic.in'; 'ficci@ficci.com'; 'BJP National Executive'; 'psfs@mea.gov.in'; 'Rajeev.kher@ris.org.in'; 'Sanjeev@sanjeevsanyal.com'; 'ashah@ncaer.org'; 'Pulak.ghosh@iimb.ac.in'; 'ictsd@ictsd.ch'; 'amb-indiawto@nic.in'; 'rajiv@luthra.com'; 'cb@cii.in'; 'Editors'; 'skumar@eesl.co.in'; vdwivedi@eesl.co.in; jsaujla@eesl.co.in
Cc: 'ssbhalla@gmail.com'; 'bibek.debroy@gov.in'; 'ashima@igidr.ac.in'; 'rr1@nipfp.org.in'; 'ratanp.watal@gov.in'; 'ceo-niti@nic.in'; 'Indian Think Tanks'; 'Gurudatt Kundapurkar'; 'Haridas Shenoy'; 'Pradeep Talpade'; 'amit.doshi@dbcorp.in'; 'amitabh.kant@nic.in'; 'admin@narendramodi.in'; 'BJP-Dept-Heads'; 'Indrajit Sethi'; 'vch-niti@gov.in'; 'blchangemakers@thehindu.co.in'
Subject: OWNING ELECTRIC CARS BY EESL ? TIME TO RETHINK

EESL  :  It is your  move  now  !

For over a year , I have been urging EESL to ,

·      Scrap it current purchase orders ( for a total of 10,000 Electric Cars ) on TATA and M&M
( Delayed deliveries – by over ONE YEAR – is a sufficiently good reason )
·      Convert that order into a “ Wet Leasing “ ( driver / maintenance / insurance  included )

In my following emails ( to Shri Saurabh Kumarji – CEO , EESL ) , you will find detailed COST / BENEFIT analysis of “ Buying vs Leasing “ and the potential for saving of a huge INITIAL INVESTMENT , running into thousands of crore of rupees

I have no idea what internal deliberations held back EESL from implementing my suggestion but , it seems , now they are left with no other option !

How come ?

Highlights :

·      Lease period …………………5 years

·      Lease Rent……………………Rs 13,499 pm for KUV 100 NXT / Rs 32,999 pm for XUV 500


·      Furher Details………http://www.mahindra.com/news-room/press-release/1293780398 

If we assume that a typical car runs 2000 km per month , then the amounts mentioned above , would translate as follows :
·      For KUV 100 NXT……………… Rs  7 per km

·      For XUV 500……………………   Rs   16.5 per km


To this , add following additional costs :
·      Petrol ………………………………  Rs   9 per km ( assuming 10 km per litre of petrol )

·      Driver Salary…………………….  Rs  10 per km ( assuming Rs 20,000 per month  )


So , the total cost for KUV 100 NXT would come to :
·      Rs 7  + Rs 9 + Rs 10 = Rs 26 per km ( for a petrol car )

But EESL order is for an Electric Car  which does not need any petrol

And battery charging cost would be around Re  1 per km only , taking the total per km cost of an electric car to :
Rs 7 + Rs 1  + Rs 10  =  Rs 18 per km

Of course , both TATA and M&M would readily bring down this figure to , Rs 12 per km when EESL floats a fresh tender for “ Wet Leasing

I strongly urge EESL to insist on a “ Per Km “ , lease rent method only ( under no circumstance , “ per month “ method )

This has the following distinct advantages :
·      Burden of setting up a vast Battery Charging Infrastructure , all over the country would fall on the EV supplier since he would not want his cars to stay parked ( idle ) if discharged


·      EESL do not need to worry about a “ fully charged km range “ – even if it is only 80 km !

·      Car supplier would ensure immediate replacement of any defective car


·      Car supplier would also ensure sufficient standby drivers to take care of absenteeism 


Dear Shri Saurabh Kumarji ,


This is your golden move to “ check mate “ the TATA and Mahindra  !

#1
EESL : Lease cars , do not Buy !  ………………………………………………………………[  16  Aug  2017  ]

#2

Waiting to be proved wrong ! …………………………………………………………………….[  30  Sept  2017  ]

 

#3

To Buy or not to Buy ?  ……………………………………………………………………………….[   11  Oct  2017  ]

 

#4

Logical to Lease  …………………………………………………………………………………………  [ 06  Mar  2018  ]

 

#5

Scam ?  ………………………………………………………………………………………………………….[ 08  Mar  2018  ]

 

#6

Buy or Lease ?  ………………………………………………………………………………………………[ 03  Apr  2018  ]

 

#7

Do  they  have  an  option ?  …………………………………………………………………………..[ 14 Apr 2018  ]

 


#8

Evidence  is  piling  up  !  …………………………………………………………………………….[ 13  May  2018  ]



#9



#10

OK , TATA !  ………………………………………………………………………………………………….[ 29  June  2018  ]

 

#11

EESL : Grab this chance !  ……………………………………………………………………………..[  01 Aug 2018 ]

 

#12

EESL : Put it off indefinitely !  ………………………………………………………………………[ 19  Aug  2018  ]

 

#13

EESL : Getting Away from Straitjacket ? ……………………………………………………….[ 26 Aug 2018  ]

 

#14

If China can , so can We                                                                        [ 27  Aug  2018  ]

 

#15

Cars on Subscription ? Convenience Redefined      …………………………………… [ 10  Sept  2018  ]

 

 

As in case of my earlier emails , this blog too is being sent to :





































=====================================================


In addition , this time , I am also sending this email to the following :






===================================================


PM’s Economic Advisory Council :








===========================


Some others :




============================

Trade Advisory Group :


Surjit Bhalla………………………………….. ssbhalla@gmail.com

S Jaishankar…………………………………  psfs@mea.gov.in

Rajeev Kher………………………………..   Rajeev.kher@ris.org.in

Sanjeev Sanyal………………………   Sanjeev@sanjeevsanyal.com  /  contact@idfcinstitute.org

Shekhar Shah…………………………….    ashah@ncaer.org

Vijay Chauthaiwale…………………….  { Not sending since requested to opt out  }

Pulak Ghosh………………………………..  Pulak.ghosh@iimb.ac.in

Jayant Dasgupta…………………………   ictsd@ictsd.ch  /   amb-indiawto@nic.in

Rajiv K Luthra……………………………… rajiv@luthra.com

Chandrajit Banerjee……………………  cb@cii.in

 

 

Also to :

skumar@eesl.co.in

vdwivedi@eesl.co.in

jsaujla@eesl.co.in

 

12  Oct  2018

www.hemenparekh.in / blogs

 

 

 


 

 

 

 

 



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