Tata Motors has emerged as the lowest bidder for a government tender of 5,450 electric buses valued at Rs. 5,000 crore.
The contract will be valid for a period of 12 years.The tender was floated by Convergence Energy Services Ltd. (CESL) under the Centre's FAME II scheme.
The procured buses will ply across five Indian cities, namely Delhi, Bengaluru, Hyderabad, Surat, and Kolkata.
Apart from Tata Motors, Switch Mobility (Ashok Leyland's EV division), VECV (a joint venture between Eicher Motors and Volvo Group), and Evey Trans of the Olectra Group participated in the bidding for electric buses.
The process was held across five categories, and the margin between the lowest and second-lowest bidders in all of the categories was around Rs. 10.
The terms of contract are for a period of 12 years, with assured 10 lakh kms per bus.
This news bought no cheer for the stock as it remained firmly in the red. From its close of Rs.434.80, it opened today at Rs.429, going down to an intraday low at Rs.425.15 and is currently trading at Rs.426 levels.