L&L Partners Deal Closed – Electric Vehicle Financing

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L&L Partners advised on financing 3000 all-electric cars to be operated by Blu-Smart Mobility on its ride hailing platform in Delhi- NCR Region.

 Our role:

The Firm advised and acted for Indian Renewable Energy Development Agency Limited (IREDA) in connection with financial assistance aggregating up to INR 2676.70 Million for part financing the cost of acquisition of 3000 all electric cars. The said electric cars will be operated by Blu-Smart Mobility on its ride hailing platform in Delhi-NCR Region.

The Firm assisted on structuring of the transaction, negotiating, finalization and execution of the financing documents, vetting of legal pre-commitment conditions and pre-disbursement conditions and issuance of a closing legal opinion on the due execution/capacity, stamping and enforceability of financing and security documents.

Significance of the Deal:

In January this year, IREDA had launched a scheme to finance new and emerging technologies that promote and increase the usage of renewable energy in the transport sector. Under the scheme, it shall also provide finance for EV fleet owners/operators and charging infrastructure owners—thus financing the entire value chain of green mobility. The current transaction is the first under the said scheme and is widely reported as being a marquee deal in India in the EV space.

IREDA’s CMD Pradip Kumar Das was quoted by PV Magazine India,“We at IREDA believe that electric mobility has huge growth potential in India. BluSmart has been providing its services in the national capital region of India, and we support their team behind this good work. This is our first major investment in this space and towards making India a cleaner and greener country.

 IREDA is looking forward to financing more EV projects to speed up the progress of moving transportation to clean sources in the country. This is part of the company’s endeavor to help reduce emissions in the National Capital Region.”

Anmol Jaggi, Co-Founder, and CEO, BluSmart Mobility was quoted by PV Magazine India as “EV is going to be the new sunrise sector that will help transition India to a cleaner future. We are excited with this fundraise and heartily thank the Government of India for taking sturdy steps in the EV sector and IREDA for putting trust in us.”

Media Coverage :

  1. https://www.livemint.com/companies/news/ireda-sanctions-rs-268-cr-to-blusmart-mobility-for-purchase-of-3k-electric-cars-11648815034799.html
  2. https://www.pv-magazine-india.com/2022/04/01/ireda-to-lend-inr-268-crore-to-blusmart-mobility/
  3. https://newsonair.com/2022/04/01/ireda-sanctions-rs-267-cr-loan-to-blusmart-mobility-for-electric-cars/
  4. https://economictimes.indiatimes.com/industry/renewables/ireda-sanctions-rs-267-cr-loan-to-blusmart-mobility/articleshow/90574091.cms
  5. https://smartcity.eletsonline.com/ireda-sanctions-rs-267-cr-loan-to-blusmart-mobility-to-buy-3000-electric-cars/

The Team:

The transaction team consisted of Girish Rawat (Partner), Sourav Padhi (Senior Associate) and Riya Manuja (Associate). Neha Sinha (Partner) and Radhika Malpani (Associate) advised on aspects pertaining to leasing of EV Vehicles.

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