KfW Bank to fund India’s ₹57,613-crore electric bus initiative

KfW, the German state-owned development bank, is finalizing plans to support India’s ambitious ₹57,613-crore initiative to introduce state-of-the-art electric buses in urban centers across the country. This move is part of a broader effort by Germany to promote sustainable transportation solutions worldwide and comes as India prepares for a significant increase in its urban population by mid-century.

KfW has a longstanding history of investing in Indian infrastructure projects, with a focus on sustainable and climate-resilient development. The bank has been active in India since 1958 and has already committed €13 billion in funding, making it the largest German financial contributor to Indian development projects. This relationship was further bolstered last year when German Chancellor Olaf Scholz assured Prime Minister Narendra Modi of an additional €10 billion by 2030. The funds are expected to support various development initiatives, including the strengthening of a resilient electric vehicle (EV) supply chain.

The current collaboration with India’s Ministry of Housing and Urban Affairs underlines KfW’s strategic role in fostering innovation within the e-mobility sector through public-private partnerships. The bank’s involvement includes key metro projects such as Kochi’s water metro and Nagpur’s metro, demonstrating its commitment to enhancing sustainable urban growth under the guidance of the Ministry.

The financing plan for the e-bus scheme involves deploying 10,000 electric buses across 169 cities. With the scheme approved in August, KfW is negotiating to potentially contribute ₹20,000 crore to this endeavor. This initiative aligns with Germany’s global green initiatives push and KfW’s mission under the directives of Germany’s Federal Ministry for Economic Cooperation and Development (BMZ).

KfW’s previous engagements in India include financing Mumbai’s metro expansion and bus system upgrades. In 2016, it funded Kochi’s water metro project with €85 million and Nagpur’s metro with €500 million. The continued partnership between KfW and India is a testament to their shared commitment to creating sustainable urban environments as India gears up for its future urbanization challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source link