| Project Detail |
India’s road transport presently accounts for 12% of India’s energy-related CO2 emissions and is a key contributor to urban air pollution. As India seeks to meet the increasing demand for the transport of goods, CO2 emissions from road transportation could double by 2050. The commercial vehicles fleet is going to expand steadily and therefore it is necessary to invest in and promote clean transport solutions. The Project’s goal is to finance low emitting commercial vehicles thus creating sustainable transport infrastructure and reducing pollution. Shriram Finance Limited (SFL) is one of the largest non-bank finance companies in India registered with Reserve Bank of India (RBI) and holds top position in commercial vehicle financing segment in India. NDB’s loan will provide longer-term funding to SFL to support and expand SFL’s lending for acquisition of low emitting and energy efficient sustainable vehicles for individual driver turned owners, first time borrowers, micro, small and medium-sized enterprises (MSMEs) including small road transport operators (SRTOs) having 4-5 vehicles engaged in transport and logistics in India. The Project will contribute to creating sustainable transport infrastructure, pollution reduction and decrease of greenhouse gas (“GHG”) emissions in the country by increasing financing available for low carbon commercial vehicles. |
