IFC Investment in E-Mobility in India
The International Finance Corporation (IFC) has announced a significant investment of $137 million to support e-mobility in India, focusing on enhancing public transport and urban mobility solutions.
Investment Details
- $100 million will be directed to JBM Ecolife, a division of JBM Auto Ltd, renowned for manufacturing and operating e-buses in India.
- $37 million in mezzanine capital will be allocated to GreenCell Mobility, an e-bus operator supported by Eversource Capital.
Objectives and Impact
According to Makhtar Diop, Managing Director of IFC, the focus is on sustainable, resilient, and globally replicable urban transport systems, which are crucial for India's urban transformation.
- The investment aims to create 12,000 jobs, with specific opportunities for women.
- Deployment of 4,000 e-buses and charging stations across 39 municipalities, including Maharashtra, Assam, Gujarat, Andhra Pradesh, Bihar, Madhya Pradesh, Puducherry, and New Delhi.
Innovative Financing and Security Mechanisms
IFC is leveraging innovative financing strategies and a pioneering payment security mechanism to mitigate payment risks, enhancing the bankability and scalability of future e-bus projects.
Market Potential and Strategic Alignment
India, with its vast fleet of 800,000 public buses and 1.2 million private buses, presents a substantial market for electrification. These investments align with the World Bank Group's objectives to accelerate e-mobility, reduce emissions, and position India as a global EV manufacturing hub, supporting government initiatives and production-linked incentive (PLI) programs.
