Rural Electrification Corporation provides Greencell Mobility with a debt of INR 3,000 crores
- ByStartupStory | July 25, 2023
In a recent development, GreenCell Mobility, promoted by EverSource Capital, has entered into a momentous Memorandum of Understanding (MOU) worth Rs 3,000 crore with the renowned public-sector enterprise, REC Limited. The MOU aims to drive a transformation in sustainable transportation across India.
“GreenCell Mobility has received unequivocal support from REC, which has agreed to extend crucial financial assistance in the form of debt funding to support the company’s ambitious projects,” stated Greencell Mobility on Monday.
GreenCell Mobility to use Rs 3,000 crore for 3,000 e-buses, alternative fuel projects, battery storage, and charging infrastructure.
Under the agreement, GreenCell Mobility and its affiliated subsidiaries or ventures engaged in electric mass mobility services will have the opportunity to access GreenCell Mobility, will utilize the allocated Rs 3,000 crore to fund 3,000 e-buses, alternative fuel technology projects, battery energy storage, and charging infrastructure. financial assistance from REC for their relevant projects until March 2028. This provision enables continued support and collaboration in advancing sustainable transportation solutions in the coming five years.
“We are extremely delighted to join forces with REC Limited. With REC Limited’s financial backing, our vision of revolutionizing urban mobility, minimizing carbon emissions, and improving the well-being of our communities comes one step closer to reality,” Devendra Chawla, MD and CEO, GreenCell Mobility said.
The scope of the MOU extends beyond current projects, encompassing not only ongoing initiatives such as electric buses, alternative fuel technology buses, battery energy storage, and charging infrastructure networks but also any future projects initiated by GreenCell Mobility. This long-term agreement solidifies the commitment between the parties and ensures continued collaboration on upcoming ventures.
REC Limited has earned a reputation for offering financial support to a diverse range of projects, including new Power Generating Stations powered by conventional and renewable energy sources. Additionally, they provide assistance for new technology initiatives like Battery Energy Storage Systems, e-Buses (including Hydrogen buses), e-Vehicles, Green Hydrogen/Ammonia projects, Hydrogen Fuel Cells storage, and other sustainable endeavours. Their broad support for various sustainable energy and transportation solutions underscores their commitment to promoting eco-friendly and innovative ventures.
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