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PMI Electro Mobility, India’s largest electric bus manufacturer, is in talks with investors to raise INR 400 crore. It plans to primarily deploy the equity raised into its special purpose vehicle (SPV) All-Fleet, which purchases buses from PMI and runs and maintains them for state transport undertakings.
The fundraise comes against the backdrop of the company winning a contract of 2,026 electric buses from the Delhi government.
“The latest bus order we have bagged marks the largest order for PMI Electro,” Satish Jain, chairman of PMI Electro Mobility, told ET. “The equity infusion will be utilised for funding operations of our SPV, expansion of our existing capacity, and research and development.”
PMI pipped Switch Mobility and JBM Auto to emerge as the lowest bidder for the Delhi government order to supply 1,456 9-metre buses and 570 12-metre buses by December 2025.
The first tranche of 100 buses will be delivered to the state in September 2023. PMI has a deep understanding of requirements for clean mass mobility solutions and the order will contribute to the capital city’s sustainability goals, Jain said.
With this move, the company will be operating a total of over 2,150 electric buses in Delhi by 2025, bringing in savings to the tune of 1,450,000 tonnes in tailpipe emissions over the 12 years of its operations, he said.
PMI’s SPV will operate, manage, and maintain these buses during the entire tenure of 12 years of their operations in the city. It will manage these buses through tech-enabled electric bus depots and charging infrastructure, ensuring the reliable and seamless operations of the e-bus fleet.
The Delhi contract, like most of the others floated in the recent past, is based on the gross cost control (GCC) model where the state transport undertaking (STU) pays on a per-kilometre basis and the buses are owned, maintained and operated by the bus manufacturer’s SPV, which acts as a mobility service provider.
Various STUs are likely to float tenders for 30,000 to 50,000 electric buses over the next three years as they seek to replace their ageing fleet of internal combustion engine-powered buses with modern battery operated ones in a bid to cut greenhouse emissions.
For the latest order, PMI Electro will raise a minimum daily billing for 170 km at the rate of ₹54 per km. The buses are likely to travel about 1,600 million green kms during their 12-year tenure, Jain said.
