Electric bus maker GreenCell Mobility has received $55 million in sanctions from Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and Clean Technology Fund (CTF) to develop 255 electric battery-powered buses.
GreenCell, which is backed by Eversource, a joint venture between investment management firm Everstone Group and solar energy project developer Lightsource bp, has additionally received grants worth $325,000 from CTF and $5.2 million from Goldman Sachs and Bloomberg’s Climate Innovation and Development Fund (CIDF), the company said in a press release.
“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.
The Indian government has been pushing automakers to build EVs and wants at least 30% of new car sales to be electric by 2030 – a shift it believes can be led by fleet operators. In the last few years, the government has incentivised firms that build EVs and batteries locally. However, experts fear that the lack of a proper EV infrastructure — such as the inadequate number of charging stations in the country — is derailing India’s EV dreams.
Moreover, the price of EVs remains high due to soaring battery and component costs.
EV startups raised at least $440 million in 2021, according to India’s Commerce and Industry Ministry. India has 1.39 million electric vehicles on its roads, according to official data. Private equity investment in India’s EV industry could top a billion dollars this year, experts have suggested.
Currently, GreenCell is implementing close to 1,400 e-bus projects across Maharashtra, Gujarat, Uttar Pradesh, New Delhi, Madhya Pradesh, etc. of which 600+ e-buses are operational across 21 cities of India.