GreenCell Secures INR 307 Crores Financing from Sumitomo Mitsui Banking Corporation for Uttar Pradesh E-Bus Project

 

GreenCell Mobility has clinched a major financial boost from Sumitomo Mitsui Banking Corporation (SMBC), a renowned Japanese financial institution, to bolster its electric bus venture in Uttar Pradesh.

Under the terms of the agreement, SMBC has extended a long-term project finance facility to GreenCell Mobility for its ambitious plan to deploy 350 electric buses across various cities in Uttar Pradesh.

Distinguished as the first Indian entity to secure Green Financing from global banking behemoths Standard Chartered and Sumitomo Mitsui Banking Corporation, GreenCell Mobility aims to spearhead a paradigm shift in sustainable mass mobility.

GreenCell’s Uttar Pradesh Project endeavors to introduce 9-meter fully built pure AC electric buses across eight pivotal cities in the state, with a focus on enhancing urban transport efficiency while reducing environmental impact.

The financing arrangement is poised to play a pivotal role in facilitating the procurement, operation, and maintenance of these electric buses under the aegis of the FAME II Scheme, administered by the Directorate of Urban Transport of the Uttar Pradesh Government.

Over the anticipated contract duration, the project is projected to yield a significant reduction of approximately 2.35 lakh tonnes of gross CO2 emissions, aligning with the broader sustainability objectives of the region.

Devndra Chawla, Managing Director and CEO of GreenCell Mobility, hailed the partnership with Sumitomo Mitsui Banking Corporation as a testament to the company’s steadfast commitment to sustainable mass mobility.

“Our historic partnership with Sumitomo Mitsui Banking Corporation underscores GreenCell Mobility’s unwavering dedication towards sustainable mass mobility,” he emphasized.

Tomofumi Watanabe and Luca Tonello, co-General Managers of Structured Finance Asia Pacific at Sumitomo Mitsui Banking Corporation, expressed pride in facilitating this significant financing deal with GreenCell Mobility, highlighting the alignment of the transaction with the Green Loan Principles.

They emphasized the commitment to advancing sustainability initiatives in India and the Asia Pacific region, setting new standards for responsible financing and environmental stewardship.

In recent months, GreenCell Mobility has emerged as a frontrunner in India’s electric bus segment, culminating in the recent launch of India’s inaugural long-distance inter-city electric bus along the vibrant Chennai-Bengaluru corridor.

 

Source: Coach Builders India