Power Finance Corporation (PFC) has approved a loan of ₹6.33 billion (~$77 million) to Gensol Engineering for the purchase of 5,000 passenger electric vehicles (EVs) and 1,000 cargo EVs to expand its green mobility footprint.

The four-wheeler passenger EVs will be leased to electric ride-hailing platform BluSmart Mobility to expand its fleet of cabs and are expected to help mitigate more than 100,000 tons of carbon emissions annually.

The company confirmed that the first tranche of the loan has been disbursed, and the first lot of EV cabs has hit the roads in Delhi.

Deemed to be India’s largest EV asset financing deal, PFC’s loan would support the Government of India’s vision of reducing the country’s dependency on fossil fuel while promoting electric mobility.

Ravinder Singh Dhillon, Chief Managing Director at PFC, said, “Through this funding, PFC has endeavored to contribute towards India’s Nationally Determined Contributions goals, and this will go a long way for moving towards a healthy and sustainable mode of transport.”

Anmol Singh Jaggi, CEO and Co-founder of BluSmart, said, “At BluSmart, we are committed to bringing this transformational shift in the EV sector and responsibly scaling our footprint across India. With the funding, we are also increasing our market share in the electric vehicle mobility segment. We are excited with this financing through PFC, which will help us deploy more EVs on the streets of our cities and continue to build on our vision to create a unique customer experience through electric mobility in India.”

Last year, Gensol received a loan of ₹2.67 billion (~$34.68 million) from one of India’s leading financial institutions to expand its EV business. Gensol said that it has been expanding its fleet of e-cars. As of February 2022, its fleet comprises 284 environment-friendly cars in Delhi, National Capital Region.

In April 2022, BluSmart Mobility won approval from the Indian Renewable Energy Development Agency Limited for a loan of ₹2.68 billion (~$35.27 million) to buy 3,000 electric cars.