Shares of electric vehicle and ancillary companies surged after India said it will float multi-billion dollar tender for building electric buses.
Mahua Acharya, managing director of Convergence Energy Services—a joint venture of four state-run energy companies—told Bloomberg TV that it will float tenders worth $10 billion (about Rs 79,965 crore) for manufacturing 50,000 electric buses.
That led to up to 3% rise in the shares of Tata Motors Ltd., Ashok Leyland Ltd., JBM Auto Ltd., Olectra Greentech Ltd. Battery makers such as Amara Raja Batteries Ltd. and Exide Industries Ltd. erased intraday gains.
This move by CESL, a company formed to manage solar and electric vehicle leasing business, will help India to meet its net-zero emissions goal. While the ongoing shortage in battery supplies remains a concern, Acharya said the country is on track to electrify all two-wheelers on the roads and public business in five to seven years.
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