NEW DELHI: Power Finance Corporation, a sectoral lending agency under the power ministry, has extended a credit line of Rs 633 crore to fund 5,000 electric cabs and 1,000 electric cargo vehicles, which will save Delhi from one lakh tonne equivalent of carbon emission - or the amount of CO2 absorbed by over five million fully-grown trees in a year.
This is one of the largest financing schemes for electric mobility assets in the country. It forms part of PFC's aim explore debt funding of electric vehicles (EVs), battery manufacturing and EV charging infrastructure to boost the government's efforts towards achieving 'net zero' emmission target.
According to PFC, the loan has been extended to Gensol Engineering Ltd, which will purchase the EVs and lease to BluSmart Mobility, a EV ride-hailing startup, for expanding its fleet.
"Through this funding, PFC has endeavoured to contribute towards India's 'nationally determined contributions (NDC)' goals, and this will go a long way for moving towards a healthy and sustainable mode of transport," a PFC statement quoted chairman Ravinder Singh Dhillon as saying as the first lot of EV cabs were flagged off on Thursday by additional secretary in the power ministry Ajay Tewari.
BluSmart has so far raised $75 million in equity and venture debt from BP Ventures, Mayfield, Survam Partners and 9 unicorn fund. It has also secured EV asset financing aggregating $150 million by DFIs, including $35 million from government agency IREDA.
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