BluSmart to Deploy 5,000 Electric Cars as PFC Approves INR 633 Cr Loan for EV Procurement
- ByStartupStory | April 22, 2023
To promote the local electric vehicle ecosystem, Power Finance Corporation, a state-backed entity, has granted Gensol Engineering an INR 633 Cr loan. The funds will be used to purchase 5,000 passenger electric vehicles and 1,000 cargo EVs for operations across Delhi-NCR. The passenger EVs will be leased to Blusmart Mobility, an electric mobility firm. The first set of EVs have already been acquired through the loan, and the initial loan tranche has been disbursed.
State-owned Power Finance Corporation (PFC) has extended a loan of INR 633 Cr to Gensol Engineering for procuring 5,000 passenger EVs and 1,000 cargo EVs in Delhi-NCR. The debt will aid local EV ecosystem growth, and the passenger cars will be leased to Blusmart Mobility. The first batch of EVs has already been procured, and the loan will aid in curbing carbon emissions by 1 Lakh tons. PFC stated it was exploring opportunities for debt funding in OEMs and fleet acquisition of EVs, battery OEMs, and EV charging infrastructure. The development comes at a time when EV adoption is rising in India, boosted by government initiatives such as FAME-II scheme and production-linked incentives for OEMs.
EV startups such as Ola Electric, Ather Energy, and Ampere Vehicles, as well as ecosystem players like Log9 Materials, CHARGE+ZONE, and Vidyut, have emerged in India due to rising EV adoption backed by state schemes such as FAME-II and production-linked incentives. The recent INR 633 Cr loan extension by Power Finance Corporation to Gensol Engineering to procure 5,000 passenger EVs and 1,000 cargo EVs for operations in Delhi-NCR will further spur the local EV ecosystem.
The loan will save 1 Lakh tons of carbon dioxide emissions, aligning with India’s net-zero goal. According to government data, India has 21.7 Lakh registered EVs, with Uttar Pradesh, Maharashtra, and Delhi leading the charts, and electric two-wheelers registering almost 30% MoM growth in March 2023. The loan extension by PFC follows SIDBI’s pilot financing scheme to fund the purchase of 50,000 EVs.
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