Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Saturday 30 September 2017

Waiting to be proved wrong !



In my earlier blog :








I had assumed following figures :


·         ALL government departmental cars are driver driven


·         Run ( max ) of 100 km per day ( 20,000 km in 200 working days )


·         At 12,000 km / year , total cost ( fixed + variable ) per km works out to Rs 22 , for a self driven petrol car ( no salary of a chauffer ) -  CRISIL Research Study


·         It would be safe to assume that this would be Rs 25 / km for an Electric car


·         As against this , cost of hailing a UBER / OLA works out to Rs 19 / km  !



Now consider these assumptions in light of the following :


·         Two days back , EESL placed a order for purchase of 10,000 electric cars , at Rs 11.2 lakh each ( Total Value = Rs 1,120 crore )


·         EESL will lease out these cars to Government Departments / Agencies , at a lease rent of Rs 45,000 per month ( Rs 540,000 per year ) – which , I assume , does not include a driver ( Hindustan Times / 30 Sept )


·         So , that works out to Rs 27 per km ,( for 20,000 km / year ) , for the leasing department , without the salary of the driver



·         If the salary of that “ departmental driver “ is ( say ) Rs 300,000 per year ( Rs 25,000 per month , inclusive of all perks / retirement benefits / leave etc ) , then that would add another Rs 15 / km for annual 200,00  km


·         So , the total cost to the government department leasing the car from EESL , adds up to Rs 42 / km ( Rs 27 + Rs 15 )



QUESTIONS :


If my assumptions are correct ( I look forward to EESL proving me wrong ! ), then following questions arise :



#   Why should government departments incur a cost / km of Rs 42 , when it could
     hire a UBER / OLA , for Rs 19 / km ?  An extra of Rs 23 / km !



#   Eventually , when EESL manages to replace existing 500,000 government owned
    ( petrol / diesel ) cars with Electric Cars , this extra cost could add up to Rs
     2,300 Crore/year (5 Lakh cars * 20,000 km per year * Rs 23 / km difference )


      
     Is this justified by saying : Since EESL is a government-owned company , this is
     only transferring the money from one pocket to another :  ?




#   As per report in Hindustan Times ( 30 Sept ) , Government departments are
     currently paying Rs 50,000 per month for leasing cars from private agencies
    ( about 150,000 cars , out of a total of 500,000 cars )


    Is it not entirely possible – and nearly certain – that , if EESL tender was for “
    Leasing  instead of Buying “ , TATA and M&M , would have quoted Rs 15 per
    km ( inclusive of a driver ) , thereby saving the government , Rs 2,700 crore per
    year   ( 5 lakh cars * 20,000  km/year * Rs 27 / km : :  Rs 42 – Rs 15 )  ?



#   Cost of Lithium-ion Battery constitutes between 50 % - 70 % of the Selling Price
    of an Electric car . And this cost is dipping by approx. 20 % per year


    So , the cost of that battery ( to TATA ) must be around Rs 6 lakh today , out of
   its quoted price of Rs 11.2 lakh per car


   Now , if  5,000 cars are likely to be delivered in 2018 and remaining 5,000 in 2019
   then the battery costs would drop to below Rs  5 lakh by 2019



   Did the EESL incorporate a “ PRICE   DE-ESCALATION  CLAUSE “ , in its tender ?



I hope Arnab Goswami ( or anchor of any other TV Channel ) gets to read this and then say :


NATION  WANTS  TO  KNOW  !



01    Oct  2017

  www.hemenparekh.in / blogs

   

  


    

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