Emails (Others): THANK YOU , SHRI JAITLEYJI

Thank You , Shri Jaitleyji,

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

Finance minister wants govt depts to lease e-vehicles [ 26 Dec ]

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

www.hemenparekh.in / blogs

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 ?

“ Now , no need to buy a Mahindra SUV for a life full of stories – just lease “

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 ,

skumar@eesl.co.in

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

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