Electric bus manufacturer PMI Electro plans Rs400 crore fundraising
PMI Electro Mobility, India’s largest manufacturer of electric buses, is in talks with investors to raise 400 crores.
It intends to put the money raised primarily into its special purpose vehicle (SPV) All-Fleet, which buys buses from PMI and runs and maintains them for state transportation agencies.
The fundraising comes on the heels of the company receiving a contract from the Delhi government for 2,026 electric buses.
“The latest bus order we have bagged marks the largest order for PMI Electro,” Satish Jain, chairman of PMI Electro Mobility, told in an interview. “The equity infusion will be utilized for funding operations of our SPV, expansion of our existing capacity, and research and development.”
PMI beat out Switch Mobility and JBM Auto to win the Delhi government contract to supply 1,456 9-meter buses and 570 a12-meter buses by December 2025.
The state will receive the first batch of 100 buses in September 2023. According to Jain, PMI has a thorough understanding of the requirements for clean mass mobility solutions, and the order will help the capital city meet its sustainability goals.
With this move, the company will operate over 2,150 electric buses in Delhi by 2025, saving 1,450,000 tonnes in tailpipe emissions throughout its 12-year operation, he said.
PMI’s SPV will operate, manage, and maintain these buses for the duration of their 12-year tenure in the city. It will manage these buses through tech-enabled electric bus depots and charging infrastructure, ensuring the e-bus fleet’s reliability and seamless operation.
The Delhi contract, as most others floated recently, is based on the gross cost control (GCC) model, in which the state transport undertaking (STU) pays per kilometer and the buses are owned, maintained, and operated by the bus manufacturer SPV, which also serves as a mobility service provider.
Various STUs are expected to issue tenders for 30,000 to 50,000 electric buses over the next three years as they seek to replace their aging fleet of internal combustion engine-powered buses with modern battery-powered buses to reduce greenhouse gas emissions.
PMI Electro will charge a minimum daily billing of 170 km at a rate of 54 per km for the most recent order. Jain estimates that the buses will travel approximately 1,600 million green kilometers` during their 12-year tenure.