GreenCell Express Pvt. Ltd (GEPL), on Monday said it has secured $55 million in debt financing to develop 255 electric battery-powered buses in the country.
The Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and Clean Technology Fund (CTF) sanctioned the loan to GEPL, which is backed by Eversource, a joint venture between investment management firm Everstone Group and solar energy project developer Lightsource bp.
The electric buses, with additional safety features including cameras, tracking and panic buttons, are expected to serve about 5 million people a year on 56 intercity routes in India.
“This financing package is more than an investment in GreenCell Mobility; it's an investment in a greener, safer and thus more sustainable future for India. With the GreenCell Express offering, we bring to the intercity bus travel segment, electric buses that reinforce safe, seamless travel experience for new age Indian travellers, especially our women,” said Sumit Mittal, chief operating officer & director-finance, GreenCell Mobility.
In addition, GreenCell received grants worth $5.2 million from Goldman Sach’s and Bloomberg’s Climate Innovation and Development Fund (CIDF) and another $325,000 from the CTF, the company said in a statement.
The grant from CIDF will help in financing the decarbonization of 100 of the 255 e-buses by deploying solar power-plus-battery energy storage systems.
“Electrifying transportation is a key driver of reducing greenhouse gas emissions in our cities. This funding accelerates our agenda of promoting and investing in clean and sustainable businesses in India to achieve India’s climate objectives and Sustainable Development Goals,” said EverSource Capital's managing director and CEO Dhanpal Jhaveri.
GEPL is a wholly-owned subsidiary of GreenCell Mobility, a platform company of Green Growth Equity Fund, an alternative investment fund in India managed by EverSource Capital. The company is building a platform to provide Electric Mobility-as-a-Service, initially using electric buses.
