Uttar Pradesh has revised its ₹1,245-crore electric bus tender to give preference to original equipment manufacturers with manufacturing facilities in the state, potentially benefiting Tata Motors, Ashok Leyland and IBM Auto.
Highlights
- Uttar Pradesh revises ₹1,245-crore tender for 1,225 electric buses.
- New rules give preference to manufacturers with production facilities in UP.
- Tata Motors, Ashok Leyland and IBM Auto could benefit from the revised conditions.
- Government cancels the earlier tender and introduces location-based preferences.
- Revised RFP allows eligible UP manufacturers to secure up to 600 buses.
Tata Motors, Ashok Leyland and IBM to Gain from UP’s Revised ₹1,245-Crore Electric Bus Tender
The Uttar Pradesh government has revised its ₹1,245-crore electric bus procurement tender, introducing new rules that could benefit manufacturers with production facilities in the state.
The decision comes just a day after the government cancelled the earlier tender for 1,225 electric buses. The revised Request for Proposal (RFP), issued by the Directorate of Urban Transport on October 15, gives procurement preference to original equipment manufacturers (OEMs) operating manufacturing facilities in Uttar Pradesh.
The move is expected to benefit Tata Motors, Ashok Leyland and IBM Auto, which have manufacturing facilities in the state.
New Tender Rules Favour UP-Based Manufacturers
Under the revised procurement framework, eligible manufacturers with production facilities in Uttar Pradesh will receive preference in the allocation of electric bus orders.
According to the RFP, eligible UP-based OEMs can secure orders for up to 600 buses by matching the lowest bidder’s price.
This provision could give locally established manufacturers a competitive advantage, even if they do not initially submit the lowest bid.
The preference will apply only if the lowest bidder, known as L1, is not an OEM based in Uttar Pradesh. If the L1 bidder is a UP-based manufacturer, it will receive the entire contracted quantity.
The earlier tender, issued in June, did not include any such state-specific preference.
Tata Motors, Ashok Leyland and IBM Could Benefit
Tata Motors, Ashok Leyland and IBM Auto are among the companies expected to benefit from the revised conditions because of their existing manufacturing presence in Uttar Pradesh.
The new rules could strengthen their position in the state’s electric bus market by allowing them to compete for a substantial share of orders.
However, the companies will still need to meet the eligibility requirements and pricing conditions specified in the tender.
Competition Intensifies Among Electric Bus Makers
The revised procurement conditions come at a time when competition in India’s electric bus market is increasing.
Companies such as JBM Auto, PMI Electro Mobility, Olectra Greentech and VE Commercial Vehicles, along with newer players and consortiums including Sai Green Projects and Transvolt, have been competing for government electric bus contracts.
Several competitors have already secured orders in other markets.
However, manufacturers without production facilities in Uttar Pradesh may face a disadvantage under the revised tender conditions.
UP’s Decision Could Influence Other States
Industry executives believe the revised tender could change competitive dynamics in the electric bus sector.
The introduction of location-based procurement preferences may encourage other states to consider similar policies to promote local manufacturing and attract investment.
Such changes could influence where electric vehicle manufacturers establish new production facilities.
The development also comes as state governments continue expanding electric public transport systems to reduce emissions and modernise urban mobility.
Industry Awaits Further Clarification
The revised tender has also raised questions among industry participants.
According to the report, a query was sent to the Directorate of Urban Transport and the Uttar Pradesh Chief Minister’s Office seeking the rationale behind the changes, but no response had been received by press time.
The revised procurement process is expected to play an important role in determining which manufacturers secure a share of Uttar Pradesh’s upcoming electric bus orders
