India's e-bus ambition hits financing speed bump
Hindustan TimesIndian banks are reluctant to lend to electric-bus makers for supply to ailing state transport operators over concerns on recovery of dues, hurting the country's goal of curbing vehicle emissions, said banking, industry and government sources. Mahesh Babu, chief executive of e-bus maker Switch Mobility, said that "most of the contracts related to STUs are seen by banks as high risk" and called for payment security for bus makers. "There have been no instances of default in India though there are delays," said a STU official in north India, but added that "a payment security mechanism may instil confidence among lenders". But notable exceptions were Tata Motors, India's largest commercial vehicle manufacturer, and Olectra Greentech, the Indian technology partner of Chinese auto major BYD, two sources said.