GreenCell Mobility gets Rs 307 cr financing from Sumitomo Mitsui for electric buses in UP

New Delhi: GreenCell Mobility on Tuesday said it has secured Rs 307 crore financing from Sumitomo Mitsui Banking Corporation for 350 electric buses in Uttar Pradesh.

Under the terms of the agreement, Sumitomo Mitsui Banking Corporation (SMBC) has extended a long-term project 'green financing' facility to GreenCell Mobility for its 350 electric buses project in Uttar Pradesh, the company said in a statement.

"This Rs 3.07 billion project finance facility represents a pivotal step in both low carbon transportation and financial innovation in India," it added.

The project is expected to reduce approximately 2.35 lakh tonne of gross CO2 emissions over its contract lifespan, by facilitating the deployment of 9 metres fully-built pure AC electric buses across eight cities in Uttar Pradesh, the company said.

"The green financing is a significant milestone to step up our efforts towards transforming India's electric transportation landscape," GreenCell Mobility MD & CEO, Devndra Chawla said.

The finance facility will help with the procurement, operation, and maintenance of electric buses under the FAME II scheme, which is administered by the Uttar Pradesh government's Directorate of Urban Transport, under a 10-year concession agreement, the company said.

"By leveraging our financial expertise and global network, we aim to help the transition towards cleaner transportation solutions, paving the way for a more sustainable future," SMBC India Country Head Hiroyuki Mesaki said.