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The Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and Clean Technology Fund (CTF) signed a $55 million financing package with GreenCell Express Private Limited (GEPL) to develop 255 electric battery-powered buses (e-buses) to serve 5 million people a year on 56 intercity routes in India and enhance the safety of passengers, especially women, through improved security features including cameras, tracking and panic buttons connected to command controls for immediate response.
Additionally, grants worth $325,000 from the CTF and $5.2 million from Goldman Sach’s and Bloomberg’s Climate Innovation and Development Fund (CIDF). CIDF grant will partially finance the decarbonization of 100 of the 255 e-buses by deploying solar power plus battery energy storage systems. Overall, the project will reduce emissions by around 15,000 tons a year.
“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 Managing Director and CEO Dhanpal Jhaveri.
Adding, Sumit Mittal, COO & Director- Finance, GreenCell Mobility, said, “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. We welcome it as an endorsement of our efforts to become a leading pan-India shared electric mobility player as part of India’s strong push for the electrification of transportation. With GreenCell Express Private Limited’s (GEPL) offering, we bring to the intercity bus travel segment, electric buses that reinforce safe, seamless travel experience for new age Indian travelers, especially our women.”
India’s public transport needs are expected to grow rapidly as the country urbanizes. In 2020, road transport accounted for 87% of all passenger trips, 18% of total energy consumption, and 11.7% of greenhouse gas emissions.
“Decarbonization of public transport in India is essential for the country to reach its net-zero climate commitments, and it’s important to ensure the safety and security of women passengers to make travel more inclusive,” said ADB Private Sector Operations Department Director General Suzanne Gaboury. “By providing safe transport for women, these intercity buses will enhance their ability to participate in economic and livelihood opportunities.”
This project has qualified for a 2x gender financing rating, a challenge launched at the G7 summit in 2018 to encourage gender lens investing among development finance institutions.
GEPL is a wholly owned subsidiary of GreenCell Mobility Private Limited (GreenCell), a platform company of the Green Growth Equity Fund (GGEF). GGEF is an Indian alternative investment fund in India managed by EverSource Capital with a mandate to mobilize institutional capital into green infrastructure in India.
GreenCell Mobility (GreenCell) has been set up to become a leading pan-India shared electric mobility player by leveraging proven global experience, developments in e-mobility technology, and the Government of India’s strong push for the electrification of transportation in India. Currently, GreenCell is implementing close to 1,400 E-Buses projects across the states of Maharashtra, Gujarat, Uttar Pradesh, New Delhi, Madhya Pradesh, etc. of which 600+ E-buses are operational across 21 cities of India.