GreenCell Mobility has secured a green Project Finance loan for its Surat E-Mobility project in collaboration with Standard Chartered Bank, which served as the sole mandated arranger, lender, and green loan coordinator for the Rs 125 crore Project Finance Facility.
The Surat E-Mobility project, which consists of 150 electric buses in Gujarat, represents the first-ever project finance transaction in India's E-Mobility sector by a global bank, the press release noted.
Devndra Chawla, CEO and MD of GreenCell Mobility said, "The green financing secured for our project, will not only boost our operations but also reaffirm our leadership in the e-mobility sector in India.”
Alper Kilic, Global Head, Project and Export Finance of Standard Chartered Bank said, “We are delighted to support GreenCell Mobility on this landmark financing, the first of its kind by any global bank in the E-mobility sector in India reinforcing SCB’s commitment to mobilise US$ 300Bn of green and transition finance by 2030.”
The Surat project is positioned to have a substantial environmental impact, with an estimated 1 lakh tonnes of CO2 emission reduction over the project's lifetime.
Following the parameters of the FAME II Scheme, the Project Finance Facility will provide finance for the acquisition, operation, and maintenance of 9-meter-long fully-built pure AC Electric Buses on a Gross Cost Contract basis. Under a 10-year concession deal with the Surat Municipal Corporation, these buses will run within the city of Surat, Gujarat, delivering a consistent revenue profile through a fixed per-kilometer fee structure that mitigates traffic risk.