PMI Electro, an electric bus manufacturer, is in discussions to raise Rs400 crore

19 Jun 2023 , 12:15 PM

The largest electric bus maker in India, PMI Electro Mobility, is in negotiations with investors to fund Rs400 crores. It intends to use the equity raised principally to fund All-Fleet, a special purpose vehicle (SPV) that buys buses from PMI and operates and maintains them for state transportation projects.

The company recently received a contract from the Delhi government for 2,026 electric buses, which is why they are raising money.

The most recent bus order we received, according to PMI Electro Mobility Chairman Satish Jain, ‘marks the largest order for PMI Electro.’ The equity infusion will be used to fund our SPV’s operations, the growth of our current capacity, and research & development.

As the lowest bidder for the Delhi government order to produce 1,456 9-meter buses and 570 12-meter buses by December 2025, PMI edged out Switch Mobility and JBM Auto.

In September 2023, the state will receive the first delivery of 100 buses. According to Jain, PMI has a thorough understanding of the specifications for clean mass transportation solutions, and the order will help the capital city achieve its sustainability objectives.

By running more than 2,150 electric buses in Delhi by 2025 as a result of this decision, the company will save 1,450,000 tonnes of tailpipe emissions over the course of its 12-year operation, according to him.

Over the course of their 12-year operation in the city, PMI’s SPV will run, oversee, and maintain these buses. Through technologically advanced electric bus depots and charging infrastructure, it will oversee these buses, assuring their dependable and seamless operation.

The Delhi contract is based on the gross cost control (GCC) model, like the majority of others floated recently, where the state transport undertaking (STU) pays on a per-kilometer basis and the buses are owned, maintained, and operated by the bus manufacturer’s SPV, which serves as a mobility service provider.

Over the next three years, a number of STUs are expected to announce tenders for 30,000 to 50,000 electric buses as they look to replace their outdated fleet of buses with contemporary battery-operated ones in an effort to reduce greenhouse gas emissions.

For the most recent order, PMI Electro will charge a minimum of 170 km per day at a rate of 54 cents per km. During their 12-year lifespan, the buses will reportedly log 1,600 million green km, according to Jain.

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