GuarantCo guarantees Chartered Speed to scale its electric bus fleet in India under flagship PM-eBus Sewa scheme

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has completed its first-ever Public Private Partnership transaction in India and the country’s first-of-its-kind partially guaranteed loan transaction under the Government of India’s PM e-Bus Sewa Scheme (PSS). This transaction forms part of the initial set of contracts awarded under the PSS.

GuarantCo is providing a partial credit guarantee for a loan facility provided by Axis Bank to Chartered Speed Limited. The facility is intended to support the scaling and operation of a 300+ fleet of electric buses and associated charging infrastructure across five cities in the states of Chhattisgarh and Meghalaya.

Under this transaction, GuarantCo is expected to issue 66.66% partial credit guarantees denominated in Indian rupees, equivalent to c. USD 17.3 million, to support Chartered Speed’s c. USD 26 million debt raise. The total debt funding comprises of five separate loan facilities with a tenor of just under 10 years, aligned with the project concession terms.

This is the fourth deal completed under GuarantCo’s USD 200 million electric vehicle framework agreement with Axis Bank to finance the growth of India’s e-mobility ecosystem, with the intention of de-risking private lending and enabling participation of commercial capital in India’s rapidly growing electric mobility sector.

The transaction delivers sustainable development impact on two fronts. As a climate solution, it supports the expansion of electric buses to reduce urban emissions and strengthen clean public transport systems. It also applies a strong gender and inclusion lens by improving the safety and accessibility of public transport for women across five Indian cities, with buses expected to feature ramps, panic buttons, and designated women‑only sections.

The deal is therefore aligned with two United Nations’ Sustainable Development Goals – 11 (sustainable cities and communities) and 13 (climate action).

Chartered Speed Limited was selected through a competitive bidding process conducted by Convergence Energy Services Limited, a green energy focused venture owned by the Government of India’s Ministry of Power and Ministry of New and Renewable Energy. These contracts have been awarded under the PSS launched by the Government of India to support the deployment of 10,000 electric buses across more than 100 cities, with the objective of promoting clean urban mobility, improving air quality and supporting sustainable infrastructure.

Buses are India’s predominant form of public transport, accounting for approximately 40 per cent of road-based travel demand^[1] making India the third-largest bus market in the world^[2]. Designed as a replicable and scalable financing model, the transaction is expected to pave the way for future electric bus investments under the PM e-Bus Sewa Scheme, mobilising greater private capital to meet India’s urban mobility needs through electric buses.

Nishant Kumar, Managing Director of Asia Investments at GuarantCo and Head of Coverage – Asia at PIDG, said:

“This transaction was a strong strategic fit for GuarantCo to bridge the gap between demand and supply for e-mobility infrastructure finance, while playing a meaningful role in decarbonising the mobility sector and supporting India’s emission reduction targets. There is an addressable market of at least 800,000 buses to be replaced with electric buses, but the lack of long-term effective and efficient local currency financing and a fragmented industry means there are challenges to gain the necessary momentum to make this transition a reality.

“Electric bus adoption in India is largely led by the public sector, with limited private participation. Scale up will require greater involvement from private operators, and this transaction is expected to mobilise and accelerate further investment through demonstration and replication aligned to the PIDG 2030 Strategy.” 

Mr. Sanyam Gandhi, Whole-time Director, Chartered Speed Limited, said,

“The PM e-Bus Sewa Scheme creates a strong foundation for private enterprises to participate in the country’s clean mobility transition, and GuarantCo’ s partnership unlocks development financing that is critical for such projects. This will enable us to scale electric bus operations along with the required charging infrastructure across multiple cities in eastern India. At Chartered Speed, we see electric buses not just as a climate solution, but also as a way to deliver safer, more accessible and reliable public transport to commuters across the country.”

Vijay Mulbagal – Group Executive & Head -Wholesale Bank Coverage, Corporate Salary, Sustainability & CSR at Axis Bank, said:

“This transaction reinforces Axis Bank’s commitment to furthering the e-mobility ecosystem and demonstrates how innovative risk sharing structures can unlock long tenor domestic financing for critical public infrastructure. Partnering with GuarantCo under the PM e Bus Sewa Scheme enables us to support the rapid deployment of electric buses across multiple cities, while maintaining prudent risk standards. As India accelerates its transition to clean and inclusive mobility, Axis Bank remains committed to financing scalable solutions to accelerate the adoption of electric vehicles thus delivering measurable climate impact, strengthening public transport systems, and improving accessibility, all within a robust and resilient risk framework.”

^[1] Decarbonisation of transport sector in India, TERI, 2024.
^[2] India’s E-bus Initiatives, Council on Energy, Environment and Water, 2025.