GreenCell Mobility Secures ₹3 Billion in Financing To Reduce CO2 Emissions The transaction marks the first-ever project financed by a Japanese bank in the e-mobility domain in India and is also SMBC's first project finance transaction in the sector for the APAC region.
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GreenCell Mobility, an Electric Mass Mobility company has bagged 'Green Financing' worth ₹3 billion from Sumimoto Mitsui Banking Corporation (SMBC), a Japanese Financial institution for its mass electric mobility project using buses in the state of Uttar Pradesh.
The transaction marks the first-ever project financed by a Japanese bank in the e-mobility domain in India and is also SMBC's first project finance transaction in the sector for the APAC region.
SMBC has granted GreenCell Mobility a long-term 'Project Finance' facility as per the agreement terms for its 350 Electric Buses project in Uttar Pradesh. This marks a significant advancement in both environmentally friendly transportation and financial practices in India.
"We are glad to share that GreenCell Mobility has secured ₹3.07 Billion refinancing deal with Sumitomo Mitsui Banking Corporation – SMBC Group for our flagship bus project in Uttar Pradesh. As the first project finance transaction by a Japanese bank in the e-mobility space in India, it underscores the immense potential and attractiveness of our initiatives in sustainability," said the company in a LinkedIn post announcing the deal.
"Our commitment to revolutionizing transportation through eco-friendly electric buses remains steadfast, and this partnership with SMBC reaffirms our dedication to driving positive change in the realm of urban transportation," the company added.
The undertaking is also aimed at reducing approximately 2.35 lakh tonnes of gross CO2 over the length of the contract by deploying 9-meter fully built pure electric AC buses that will cover 8 cities across Uttar Pradesh.
The finance facility is said to enable the company to procure, operate, and maintain the fleet of electric buses under the Faster Adoption and Manufacture of Electric Vehicles (FAME II) Scheme, governed by the Uttar Pradesh state government's Directorate of Urban Transport.
The project is said to operate under a 10-year concession agreement that guarantees a fixed cost per kilometer and ensures a revenue stream that is consistent.
GreenCell had earlier raised funds with the help of Standard Chartered worth ₹1.25 billion to enable and operate electric buses in Surat, Gujarat.
