September 19, 2025: The International Finance Corporation (IFC) has unveiled a significant $137 million investment aimed at transforming India’s public transportation system by expanding the use of electric buses. The World Bank Group’s private sector arm will allocate $100 million to JBM ECOLIFE, one of India’s leading electric bus manufacturers, and provide $37 million in mezzanine capital to GreenCell Mobility, a prominent player in India’s growing electric bus market, backed by Eversource Capital.
This financing will pave the way for the deployment of 4,000 electric buses and associated charging infrastructure across 39 municipalities in Maharashtra, Gujarat, Assam, Andhra Pradesh, Bihar, Madhya Pradesh, Puducherry, and New Delhi. These regions are emerging as hotbeds for e-mobility solutions, backed by regulatory incentives and strong government support.
IFC Paves Way for A New Era for India’s Public Transport System
The latest financing deal aims to address one of the most pressing challenges for the electric vehicle industry in India: the delay in payments by state transport undertakings (STUs). As a solution, the International Finance Corporation will implement a Payment Security Mechanism (PSM) to ensure that bus operators are paid on time, even in the case of delays in payment from public transport authorities. This innovation is expected to unlock greater private sector participation in the market, encouraging more investments in clean energy transport solutions.
India’s massive fleet of buses, both public and private, makes it an ideal candidate for large-scale electrification. With over 800,000 public buses and 1.2 million private buses, the country is uniquely positioned to become a global leader in e-mobility. The goal is to electrify 40% of India’s buses by 2030, a target that could significantly reduce the country’s carbon footprint while creating thousands of green jobs.
Leveraging Private Capital for a Sustainable Future
The IFC’s investment is also seen as a way to mobilize private capital into India’s evolving green infrastructure sector. With the PSM mechanism, it becomes a model of how innovative financing can help mitigate the risks associated with large-scale public transport projects, while also aligning with India’s long-term climate and sustainability goals.
The country’s regulatory environment is increasingly supportive of electric vehicles, making India one of the most attractive markets for green transport innovation. As demand for clean buses rises across both public and private sectors, the country’s electric vehicle ecosystem is poised to make a significant leap forward, with IFC’s investment serving as a key catalyst for change.
By supporting JBM ECOLIFE and GreenCell Mobility, the IFC is playing a pivotal role in accelerating India’s transition to sustainable mobility. As India works to meet its 2030 climate targets, investments like these will be crucial in transforming the country’s transportation infrastructure into one that is both green and future-ready.
