September 20, 2023
New Delhi — Today the United States and India launched a mechanism that will facilitate deployment of 10,000 made-in-India electric buses in cities across the country, bringing into reality a joint vision first announced during Prime Minister Modi’s official state visit to the White House. The United States is proud to partner with India as it shows the change that can be achieved through focused and cooperative action.
U.S. Ambassador to India Eric Garcetti said, “Every day we see the impact of the climate crisis at a global level. We must respond now or jeopardize the future of our planet and our people. The partnership announced today will mobilize financing for a fleet of 10,000 electric buses throughout India, expanding options for electric public transportation in India, creating cleaner cities and healthier communities.”
The recent G20 Leaders’ Summit underscored that the United States and India are partnering to tackle the climate crisis through sustainable investments, including decarbonization of the public transportation sector.
This new initiative between the governments of India and the United States shows how public and private partners can work together to lower emissions and promote electric mobility. Through this new partnership, the U.S. government, including the U.S. Agency for International Development (USAID) and the office of the U.S. Special Presidential Envoy for Climate, will partner with public and private-sector entities to accelerate electric bus financing. Partners including India’s Ministry of Heavy Industries, and Convergence Energy Services Limited, will collaborate with private philanthropies such as the Global Energy Alliance for People and Planet and the Sequoia Foundation.
A key component of this project will be a new payment security mechanism (PSM) that will accelerate new and more sustainable investments by lowering financial risks. By mitigating risk for lenders, the PSM leads to improved loan terms and reduced financing costs, facilitating smoother project implementation. Ultimately, this partnership sets a new model for international cooperation in the field of electric mobility.