CESL raises pitch for plying hydrogen bus fleet across TG

Hyderabad: Telangana has emerged as a priority region for Convergence Energy Services Limited (CESL), a subsidiary of Energy Efficiency Services Limited (EESL) under the Union Ministry of Power, as it launches a nationwide push for hydrogen bus deployment. This strategic expansion marks a significant step in India’s transition towards sustainable transportation, building on CESL's successful aggregation and tendering of over 33,000 electric buses.

CESL’s move into hydrogen buses is expected to catalyse OEM participation, accelerate infrastructure development, and reduce urban pollution. The initiative aligns with India’s broader climate goals, aiming to foster a robust hydrogen ecosystem that creates new employment opportunities, supports indigenous manufacturing, and enhances public health.

The agency will focus on prominent cities in Telangana such as Hyderabad, Warangal, Mahabubnagar, and Khammam, alongside other southern urban centres, including Tirupati, Visakhapatnam, Vijayawada, Bengaluru, Mysore, Chennai, Coimbatore, and Thiruvananthapuram. This regional emphasis reflects CESL’s commitment to promoting clean mobility in both metropolitan and tier-two cities, where pollution levels and public transport needs are increasing.

As the nodal agency designated by the Union Government, CESL has unveiled a comprehensive action plan to promote hydrogen mobility. The plan aims to aggregate national-level demand for hydrogen buses, coordinate efforts between central and state stakeholders, harmonise procurement processes, and build confidence among Original Equipment Manufacturers (OEMs), financiers, and industry partners. By replicating its successful electric bus procurement model, CESL seeks to overcome the historical barrier of low demand that has made OEMs hesitant to invest in hydrogen bus manufacturing.

CESL’s electric bus aggregation model has already achieved several milestones, with the Gross Cost Contract (GCC) rates discovered through its tenders being at par with, or below, those of CNG and diesel buses, making electric mobility financially attractive. The model, which shifted the procurement paradigm to 'mobility as a service', is now planned for replication in the hydrogen sector.

Bhupender Gupta, Chairman and Managing Director of NHPC, and EESL CEO Akhilesh Kumar Dixit emphasised the importance of aggregating hydrogen bus demand for national benefit in a letter to stakeholders on Sunday. CESL has invited national and state-level agencies to submit their requirements using its standardised format to facilitate coordinated procurement and deployment.