PFC sanctions Rs 663 crore loan to Gensol Engineering for purchase of Electric Vehicles

Tags: Economy/Finance

Power Finance Corporation (PFC), a Maharatna company and NBFC in the Indian power sector has sanctioned a loan of Rs 633 crore to Gensol Engineering, for the purchase of 5000 passenger Electric Vehicles (EVs) and 1000 cargo EVs.

An overview of the news

• The passenger EVs will be leased to Blusmart Mobility Pvt Ltd (BMPL) to expand its fleet of ride-hailing cabs.

• The first tranche of the loan has been disbursed, and the first lot of EV cabs has hit the roads of Delhi.

• 5000 Passenger E4W (Electric Four-Wheelers) funded by PFC are being deployed in Delhi and will result in CO2 emission reduction.

• With a view to accelerate India's net-zero target, PFC is exploring opportunities in debt financing of EVs (OEMs and Fleet Acquisition), battery OEMs and EV charging infrastructure, apart from large scale renewable energy financing.

Power Finance Corporation Ltd (PFC)

• It plays an important role in the power sector and is responsible for electricity management.

• Established -in 1986

• It falls under the ownership of the Ministry of Power and has achieved the status of Maharatna from Navratna on 12th October 2021.