PFC Actively Manages The Gensol Situation: All You Need To Know

The state-owned Power Finance corporation (PFC), in alignment with India's commitment under the Paris Agreement to reduce carbon intensity and the government's push for electric vehicle (EV) adoption through several schemes, sanctioned Rs 633 crore to Gensol Engineering Ltd in January 2023, PFC said in a corporate filing on Tuesday.

What Did Power Finance Corporation Say?

"This funding was earmarked for the procurement of 6,000 EVs i.e. Rs 587 crore for procurement of 5,000 electric four wheelers for lease to BluSmart Mobility's ride-hailing service and Rs 46 crore for procurement of 1,000 electric three wheelers for cargo operations. However, three wheeler loan was not availed," the statement said.

Out of the total loan amount that was sanctioned, that is, Rs 587 crore, PFC had only disbursed Rs 352 crore to Gensol for the leasing of 3,000 EVs to BluSmart Mobility, it added. Of these only 2,741 vehicles have been delivered and hypothecated to PFC as confirmed by third party agencies appointed by PFC.

What About Gensol's NCDs And Equity Shares?

PFC also has pledge of Gensol's equity shares and Non-Convertible Debentures (NCDs), a Corporate Guarantee from Gensol Ventures Private Limited, and Personal Guarantees from promoters. "Liquid assets in the form of TRA balances, DSRA balances, and Fixed Deposit by BluSmart with a lien marked to PFC are also in place," it said.

What Is The Current Situation?

While there is a principal outstanding amount of Rs 307 crore, payments worth Rs 45 crore were made as of April 18, 2025.

According to the statement, Gensol was making its payments regularly until January 2025, however, in Q4 FY25 PFC invoked the Debt Service Reserve Account (DSRA) to clear February and March 2025 dues.

Also Read: PFC Files Case: Gensol Caught Using Fake Documents to Secure Loans