CESL chief executive Mahua Acharya said these tenders are starting to look like infrastructure projects and local production of electric buses is expected to grow along with demand.

“This country is moving very, very quickly on its electric vehicle ambition,” Acharya told Bloomberg Television in an interview. “Funding therefore remains a challenge insofar as it presents an opportunity.”

CESL was established in 2020 to manage the solar and electric vehicle rental business of its parent company Energy Efficiency Services Ltd., which is a venture between four public energy companies. These are the leading companies playing a major role in India’s plan to cut its projected global carbon emissions by one billion tonnes by 2030 as part of its goal to reach net zero emissions by here 2070.

As the world’s third-largest emitter, India needs to build charging stations, improve network capabilities and redesign depots to ensure adoption of electric vehicles, Acharya said. She also mentioned ongoing shortages of battery supplies as a concern.

India could electrify all two-wheelers currently on the roads and complete the electrification of public buses within five to seven years, Acharya said. Earlier this year, CESL awarded a contract for 5,450 electric buses on behalf of five state governments.

CESL is still looking for investors for its distributed solar business which it currently funds internally, Acharya said.

–With the help of Ragini Saxena, Karolina Miziolek, Juliette Saly and Yvonne Man.