The Asian Development Bank (ADB) signed a $40 million financing package with GreenCell Express Private Limited (GEPL) to develop 255 electric battery-powered buses (e-buses) to serve 5 million people a year on 56 intercity routes in India and enhance the safety of passengers, especially women, through improved security features including panic buttons connected to command controls for immediate response.
About The Financial Package:
The financial package comprises $20.5 million loan (in equivalent Indian rupee) from ADB’s ordinary capital resources, ADB’s administration of a $14 million loan from the Clean Technology Fund (CTF), grants worth $325,000 from the CTF and $5.2 million from Goldman Sach’s and Bloomberg’s the Climate Innovation and Development Fund (CIDF).
ADB also assisted in mobilizing an additional parallel loan of $20.5 million from the Asian Infrastructure Investment Bank.
What Has Been Said:
“Decarbonization of public transport in India is essential for the country to reach its net-zero climate commitments, and it’s important to ensure safety and security of women passengers to make travel more inclusive,” said ADB Private Sector Operations Department Director General Suzanne Gaboury.
“By providing safe transport for women, these intercity buses will enhance their ability to participate in economic and livelihood opportunities,” “Electrifying transportation is a key driver of reducing greenhouse gas emissions in our cities. This funding accelerates our agenda of promoting and investing in clean and sustainable businesses in India to achieve India’s climate objectives and Sustainable Development Goals,” said EverSource Capital.
About GreenCell Mobility Private Limited:
GEPL is a wholly owned subsidiary of GreenCell Mobility Private Limited (GreenCell), a platform company of Green Growth Equity Fund (GGEF). GGEF is an Indian alternative investment fund in India managed by EverSource Capital with a mandate to mobilize institutional capital into green infrastructure in India.
- Asian Development Bank (ADB), established in 1966 is owned by 68 members-49 from the region.
- It is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.
- Further, it assists members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
- It aims to promote social and economic development in Asia and the Pacific.
- As of 31st December 2019, ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
- It is headquartered in Manila, Philippines.