MUFI secures Rs 80 million from Shell Foundation for EVs in India

Mufin Green Finance Limited (MUFI) has announced that it has secured Rs 80 million from the Shell Foundation. The company has also received the assistance of large financial institutions like the Indian Renewable Energy Development Agency and the State Bank of India. It will utilise the funds to establish a Rs 164.56 million joint de-risking pool in the form of First Loan Default Guarantee (FLDG).

The finance aims to stimulate commercial debt by allowing MUFI to take on around Rs 3,291 – Rs 4,936.5 million in debt for more than five years. Additionally, this investment will allow MUFI to be able to purchase 42,000 electric vehicles (EVs) for customers with limited resources, giving them over 210 million trips and cutting carbon emissions by 0.37 million tonnes for more than a period of five years. This will further help in harnessing commercial capital for funding EVs for lower-income transporters in India.

Presently, the company is managing a portfolio of Rs 3 billion and intends to grow it by more than 20 times its current portfolio in the upcoming three years.

In April 2023, Power Finance Corporation Limited (PFC) sanctioned a loan of Rs 6.33 billion to Gensol Engineering Limited. The loan intended the purchase of 5,000 passenger EVs and 1,000 cargo EVs.

In March 2021, The US International Development Finance Corporation and Shell Foundation announced a new collaboration to promote renewable energy uptake in low-income areas of Africa and Asia. The collaboration aimed to improve gender inclusion and bring affordable renewable energy to more than 5 million people in these regions.