GreenCell Mobility, a trailblazer in the Electric Mass Mobility sector, has clinched a significant green financing deal with Sumitomo Mitsui Banking Corporation (SMBC), a leading Japanese financial institution, for its ambitious Electric Bus project in Uttar Pradesh.
This groundbreaking transaction not only represents the first-ever Project Finance initiative by a Japanese bank in India’s Electric Mobility sector but also marks SMBC’s maiden foray into Project Finance within the E-Mobility domain in the Asia Pacific region. Under the terms of the agreement, SMBC has extended a substantial long-term Project Finance facility amounting to INR 3.07 billion to GreenCell Mobility for its pioneering venture involving 350 Electric Buses in Uttar Pradesh. This financing arrangement signifies a crucial milestone in both promoting low carbon transportation and fostering financial innovation within the Indian landscape. The envisioned project holds the promise of slashing approximately 2.35 lakh tonnes of gross CO2 emissions throughout its contract lifespan. This will be achieved through the deployment of 9-metre fully built pure AC Electric Buses across 8 key cities in Uttar Pradesh.
The Project Finance facility is strategically tailored to support the procurement, operation, and maintenance of electric buses as part of the FAME II Scheme, overseen by the Directorate of Urban Transport under the Uttar Pradesh government. Operating under a 10-year concession agreement, the project offers a fixed per-kilometre fee, effectively mitigating traffic risk and ensuring a steady revenue stream akin to an annuity. This landmark financing arrangement not only underscores the growing momentum towards sustainable transportation solutions but also highlights the critical role of innovative financing mechanisms in driving forward India’s electric mobility revolution. By partnering with global financial institutions like SMBC, GreenCell Mobility is poised to lead the charge towards a greener, more eco-friendly future for public transportation in Uttar Pradesh and beyond.
