E- Bus : without ETA [ Expected Time of Arrival ] ?

Here is why :

Govt may blacklist Tata Motors for delaying E-bus deliveries  

Extract :

The automobile manufacturer has been pulled up by the government for failing to honour the deadline regarding the timely deliveries of the vehicles along with a warning that it could be proscribed from getting future contracts under FAME II  if the dispatches are not expedited.

Tata Motors in March 2018, had won a contract for supplying 40 electric buses each to the cities of Guwahati, Kolkata, Jaipur, Jammu & Kashmir, and Lucknow, the deadline of which according to the report has been missed

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MY  TAKE

If the supplier could not deliver even 40 buses after ONE YEAR , what can we expect the “ Shape of Things to Come “ under FAME II , which calls for delivery of 7,090 e-buses in next 3 years  ie :  some 2300 per year ?

Is FAME II headed for an “ Unmitigated Disaster “ ?

Some 50 years back , on the northern border of Canada, USA government installed a series of Radar installations , to give it an early warning of a few minutes , for arriving Russian missiles

It was popularly known as DEW (  Distant Early  Warning ]  system .

Forewarned is forearmed  !

I urge the Central Government to IMMEDIATELY install the following DEW system for all E – Bus purchase – even if that means cancelling the existing orders – and re-tendering

Central Government to release a STANDARD AGREEMENT for all public authorities for purchase of E – Buses , to become eligible to get subsidy under FAME II

That agreement must include following clauses :

[ A ]    Lease

          There will be no “ outright purchase “ . All tenders will be only for “ Wet Leasing “ of buses

          Wet leasing tariff shall only be on “ Per Km “ basis and never on “ Per Day –Week –Month “ basis

          ( This will put the ball in the court of the bus

 supplier to ensure that the buses are in working conditions , all

            the time. Supplier will ensure plenty of spare parts / availability of drivers / network of Charging Stations )

[ B ]    Risk Purchase

          If delivery is delayed by 30 days beyond committed delivery date , buyer will have recourse to wet lease

          buses from any source – the cost of which, the original supplier will have to bear

[ C ]   Liquidated Damages

         For each day of delay beyond the committed delivery date , supplier will be liable to compensate the buyer

         an amount equal to the “ average daily operating cost of an alternate diesel bus x number of e – buses on

         order “

[ D ]   Bonus cum Penalty

          Early delivery :

         For each week of early delivery , supplier will be paid 1 % additional “ Per Km “ tariff for the

         first year of running ( Km ) of the number of buses delivered earlier ( than stipulated date )

         That means , should supplier deliver 5 buses , 4 weeks earlier , then supplier will be entitled to get paid as

         follows :

         “ AT / km ( Agreed tariff ) + 4 % AT = BT / km ( Bonus tariff )

          Bonus Amount =  BT x No of buses delivered early ( ie 5 ) x Guaranteed Km / year ( may be 30,000 Km at

         150 km / day X 200 days )

         Late delivery :

         Reversal of above calculation by deducting 1 % of AT per week of late delivery , to arrive at PT ( Penalty

        Tariff and Penalty Amount )

[ E ]    Termination

         In the event of supplier failing to deliver beyond 3 months of the stipulated date, buyer reserves the right to

         terminate the contract without notice but without prejudice to its claims under aforementioned clauses

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It is the same sad story of late ( by 2 years ? ) deliveries of 10,000 Electric Cars ordered by EESL on TATA Motors and M&M , in March 2017

As of today, only 1,000 cars have been delivered – after 2 years of waiting !

Starting with my first email ( 16 Aug 2017 ) till the last one ( 12 Oct 2018 ) , I have sent 16 emails to EESL , urging it to cancel this order and retender for Wet Leasing

[  EESL : It is your move now !     ……………….  12  Oct  2018  ]  

Moral of the ( Hi )–Story  :

#   Fool …………………………… Keeps making the same mistake , again and again . Never learns

#   Learner …………………….. Does not make the same mistake twice . Learns from own mistake

#   Wise person  …………….. Learns from mistakes of others – and avoids making mistake in first place

#    ?  ?  ?  ?  ? ………………. Goes to extreme length to defend a mistake as something “ Unavoidable “

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05  April  2019

Rsvp :  hcp@RecruitGuru.com