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May 7, 2024

GreenCell Mobility Secures Rs 300 Crore Credit from SMBC for Uttar Pradesh E-Bus Project

GreenCell Mobility, a Mumbai-headquartered electric mobility company, has clinched a significant financial boost of Rs 307 crore from Sumitomo Mitsui Banking Corporation (SMBC), a Japanese financial institution, to fuel its ambitious project of deploying 350 electric buses in Uttar Pradesh.

According to the company’s statement, SMBC has provided a long-term project finance facility to GreenCell Mobility for its venture aiming to deploy 9-metre fully air-conditioned electric buses across eight cities in Uttar Pradesh. This initiative is expected to slash approximately 2.35 lakh tonnes of carbon dioxide emissions over the lifespan of the contract.

“This green financing marks a significant milestone in our journey to revolutionize India’s electric transportation landscape,” stated Devndra Chawla, Managing Director and CEO of GreenCell Mobility.

The project finance facility will enable GreenCell Mobility to handle procurement, operation, and maintenance of the electric buses under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) Scheme, administered by the Uttar Pradesh Government’s Directorate of Urban Transport. Operating under a 10-year concession agreement, the project ensures a fixed per-kilometre fee, mitigating traffic risk and ensuring a consistent revenue stream similar to an annuity.

The Ministry of Heavy Industries has sanctioned 7,210 e-buses as part of its ambitious FAME-II initiative, highlighting the government’s commitment to promoting sustainable transportation solutions.

The infusion of Rs 300 crore in financing not only supports GreenCell Mobility’s operational needs but also aligns with the national goal of increasing green vehicle penetration. The electric bus segment faced challenges in 2023, with its penetration rate dropping to 3.3 per cent from 4.6 per cent in 2022.

“By leveraging our financial expertise and global network, we aim to contribute to the transition towards cleaner transportation solutions, paving the way for a more sustainable future,” remarked Hiroyuki Mesaki, SMBC India Country Head.

This financial collaboration between GreenCell Mobility and SMBC signifies a crucial step forward in India’s electric mobility journey. It not only addresses the pressing environmental concerns but also paves the way for a more sustainable and eco-friendly transportation ecosystem in the country.

Jhumpa Lahiri

Jhumpa Lahiri

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