"CESL Looks to Engage Private Sector for Electric Vehicle Charging Infrastructure Expansion"

Convergence Energy Services Ltd. (CESL), a subsidiary of Energy Efficiency Services Ltd (EESL), has announced its intention to issue a tender next month, aimed at engaging electric vehicle (EV) charging point operators. The objective is to significantly augment the EV charging infrastructure throughout the country.

While CESL has been actively increasing the number of charging stations across India through its own investments, the company is now strategizing a transition towards an asset-light public-private partnership (PPP) model to further accelerate the expansion of the charging infrastructure.

In this proposed PPP approach, CESL will provide land and entice private investors to establish and manage charging stations under a revenue-sharing framework.

Presently, CESL allocates its resources for equipment and other necessities when setting up charging stations and also takes on the responsibility of maintaining them. However, the current business model has not proven financially sustainable, with returns remaining below expectations. Enhanced returns are anticipated only when the utilization rates of charging stations increase, a development that is contingent on the growing adoption of electric vehicles (EVs).

HBL