Indian Government raised a bidding session for production of 10,000 electric cars under a government-administered tender and home-grown automaker Tata Motors has just won Rs 1120 Crore bid for ten thousand cars.

Tata Motors Ltd has won a marquee government contract for supplying 10,000 electric cars, outbidding Mahindra & Mahindra (M&M) in the contest for the Rs 1,120 crore order, the largest such procurement anywhere in the world. The electric cars will be procured by Government owned Energy Efficiency Services Ltd (EESL) at a per-unit price of Rs 11.2 lakhs. This move will lay foundation to the Modi-led NDA government’s ambitions plan of shifting sales of cars to electric-fuelled cars by 2030.

The project will be a joint-venture comprising four government-owned power sector entities — NTPC, Power Grid, Power Finance Corp and Rural Electrification Corporation. During the bid, Tata Motors turned out to be the lowest bidder with Rs 10.16 lakh per unit, exclusive of GST. The vehicle will be provided to EESL for Rs11.2 lakhs which will be inclusive of GST and comprehensive 5-year warranty which is 25% below the current retail price of a similar e-car with 3-year warranty. As per plans, Tata motors will produce these cars in two phase – the first batch will consist of 500 units and will be delivered in November 2017 and the remaining 9500 units will be rolled out in second batch – which has undefined date of release yet.

Among Nissan, Mahindra & Mahindra and Tata Motors – Mahindra & Mahindra was the other contender who could have won the bid but with competitive prices from Tata, there was little to think about deciding the winner. As per reports, Tata Motors will supply the electric version of its Tigor sedan, for which batteries will be imported and the car will be delivered to EESL by November.