GreenCell Mobility Secures Rs 300 Crore Funding for Electric Bus Project in Uttar Pradesh

Key Highlights:
• GreenCell Mobility secures Rs 300 crore green funding from SMBC for UP electric bus project.
• SMBC's deal marks its first project finance transaction in India's electric mobility sector.
• Long-term project finance loan granted for GreenCell's 350 Electric Buses project.
• 10-year concession agreement ensures fixed per-kilometer price, reducing traffic risk.
• Deployment of AC Electric Buses estimated to cut 2.35 lakh tonnes of CO2 emissions in UP.

GreenCell Mobility has received Rs 300 crore in green funding from Sumitomo Mitsui Banking Corporation (SMBC) for its electric bus project in Uttar Pradesh.

According to the agreement, SMBC has granted GreenCell Mobility a long-term Project Finance loan for its 350 Electric Buses project in Uttar Pradesh.

According to the press release, this deal represents not only a Japanese bank's first Project Finance transaction in the Electric Mobility domain in India, but also SMBC's first Project Finance transaction in E-Mobility in Asia Pacific.

Operating under a 10-year concession agreement, the project ensures a fixed per-kilometer price, reducing traffic risk and providing a constant cash stream equivalent to an annuity.

The project is estimated to decrease roughly 2.35 lakh tonnes of CO2 emissions throughout its contract by supporting the deployment of 9-metre completely built pure AC Electric Buses in eight cities in Uttar Pradesh.

Devndra Chawla, MD and CEO of GreenCell Mobility, stated, "Our historic partnership with Sumitomo Mitsui Banking Corporation demonstrates GreenCell Mobility's unwavering commitment to sustainable mass mobility. GreenCell Mobility has become the first Indian startup to receive green financing from major banks Standard Chartered and Sumitomo Mitsui Banking Corporation."

Tomofumi Watanabe and Luca Tonello, co-General Managers of Structured Finance Asia Pacific at Sumitomo Mitsui Banking Corporation, stated, "We are proud to facilitate this groundbreaking financing deal with GreenCell Mobility, further reinforcing our commitment to advancing sustainable initiatives in India and the Asia Pacific region."

Also Read: Electric Buses Sales Report April 2024: Tata Motors Emerges as Top Choice for E-Buses

"By leveraging our financial expertise and global network, we hope to help the transition to cleaner transportation solutions, paving the way for a more sustainable future," said Hiroyuki Mesaki, Country Head of SMBC India.

CMV360 Says

This funding deal between GreenCell Mobility and SMBC is a game-changer for sustainable transport in India. The long-term loan ensures stability over 10 years, reducing traffic risk and cutting CO2 emissions by 2.35 lakh tonnes. 

It signals a major step forward in sustainable transportation in India, with potential to greatly reduce CO2 emissions and attract further investment in electric mobility.