State-run lenders for Gensol's cars dither on what to do next

Gensol had borrowed from PFC and Ireda to buy 4,700 EVs, which were leased to BluSmart

- Ayaan Kartik & Manas Pimpalkhare

The fate of thousands of BluSmart electric cars remains in limbo as state-run lenders who financed their purchase dither over next steps.

Gensol Engineering Ltd had borrowed from Power Finance Corp. Ltd (PFC) and Indian Renewable Energy Development Agency (Ireda) to buy 4,700 electric cars, which were then leased to BluSmart.

These cars have been idling since the regulatory strictures on Anmol Singh Jaggi, who led both companies. Cars lose value, electric cars more so, and idling ones may see batteries degrade even faster.

"Many big banks, asset financing firms and family offices of high net worth individuals are in the market to sell or lease the BluSmart vehicles they financed," a person aware of the matter said. "PFC and Ireda have still not decided what they will do with cabs hypothecated with them." A second person confirmed that the state-run firms are yet to decide on how to proceed.

On Monday, Delhi-based Evera Cabs took over 500 BluSmart cabs from lenders, with plans to take 500 more.

Banks, non-bank lenders and family offices who financed such purchases are also looking for parties who can buy or lease them.

A BluSmart investor presentation in 2023 said its fleet had 2,000 electric vehicles (EVs) leased from various lenders.

The person cited above said these lenders include Axis Bank, HDFC Bank, Mahindra Finance's Quiklyz, Tata Motors Finance and Kotak Mahindra Bank.