GreenCell Mobility Secures $37M from Japan’s SMBC for UP Electric Buses

GreenCell Mobility, an electric mobility company, has announced a groundbreaking financing agreement with Japan-based Sumitomo Mitsui Banking Corporation (SMBC) worth ₹3.07 billion (~$37 million). The funding will facilitate the deployment of a fleet of 350 electric buses across eight cities in the northern Indian state of Uttar Pradesh.

This partnership marks the first instance of a Japan-based bank providing project financing for an electric mobility initiative in India, as claimed by GreenCell Mobility. Additionally, it signifies SMBC’s inaugural venture into financing e-mobility projects in the Asia-Pacific region.

The loan secured from SMBC will enable GreenCell Mobility to procure, operate, and maintain 9-meter pure electric air-conditioned buses over a 10-year concession period in collaboration with the Uttar Pradesh government. The initiative falls under the government’s Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME II) program.

According to GreenCell Mobility, the project guarantees a fixed per-kilometer fee, thereby mitigating traffic risk and ensuring a consistent revenue stream similar to an annuity. The company estimates that the e-bus fleet will reduce CO2 emissions by approximately 235,000 tons over the contract’s lifetime.

Commenting on the historic partnership, Devndra Chawla, CEO of GreenCell Mobility, expressed the company’s steadfast commitment to sustainable mass mobility. He hailed the agreement as a significant milestone in their efforts to revolutionize India’s electric transportation landscape.

This recent financing deal follows GreenCell Mobility’s earlier success in securing ₹1.25 billion (~$14.97 million) in green financing from Standard Chartered for electric bus deployment in Surat. Additionally, in 2022, the company entered into a $40 million financing arrangement with the Asian Development Bank for its subsidiary, GreenCell Express, to develop 255 battery-powered electric buses serving intercity routes.

Prior to these developments, GreenCell had announced a substantial investment of ₹4 billion (~$55.09 million) in a consortium led by PMI Electro Mobility Solutions. This investment encompassed the deployment of 350 electric buses across Uttar Pradesh, with Lucknow and Kanpur slated to receive 100 buses each, Varanasi and Prayagraj 50 buses each, and Gorakhpur and Jhansi 25 buses each. Moreover, the investment entailed the acquisition of a 49% stake in the consortium.