IFC to invest $137M to boost India’s e-bus fleet; partners with JBM Group, GreenCell Mobility
India runs around 800,000 public buses and 1.2 million private buses, creating ideal headroom to electrify public transport amidst the country’s EV goals by 2030.
International Finance Corporation on Thursday said it will provide $137 million in financing to electric bus makers JBM ECOLIFE, part of JBM Auto, and GreenCell Mobility.
IFC, which is part of the World Bank Group, is a United Nations agency that invests in private sector growth in developing countries.
According to the company, it will provide $100 million to JBM ECOLIFE and $37 million in mezzanine capital—a combination of equity and debt financing—to Eversource Capital-backed GreenCell.
These investments are expected to help deploy 4,000 e-buses and charging stations across 39 municipalities in Maharashtra, Assam, Gujarat, Andhra Pradesh, Bihar, Madhya Pradesh, Puducherry, and New Delhi.
Additionally, the projects will use a market-first payment security mechanism (PSM) to help mitigate payment risks associated with municipal and state transport undertakings. This is because state transport undertakings (STUs) often delay or miss payments to bus operators, which makes banks and private investors wary of funding such projects. PSM will work as a guarantee to ensure bus operators are paid on time, even if there are delays.
”E-mobility is the future—and we are making it possible through investments in leaders like JBM and GreenCell... By leveraging innovative financing and a pioneering payment security mechanism, we’re mobilising private capital at scale to support national priorities. India’s leadership is accelerating its own transition while shaping how cities worldwide finance the next generation of mobility solutions,” said Makhtar Diop, Managing Director, International Finance Corporation.
India’s public bus ecosystem, which currently houses around 800,000 public buses and 1.2 million private buses, is an ideal incubator for electrification—one that has received regulatory support and has seen rising demand, prompted by state governments and private intercity bus operators.
The investment will also help the country inch towards its 2030 goal of electrifying 40% of buses.
Edited by Suman Singh