NHEV Raises Concerns Over BluSmart Deal Amid Financial Scrutiny

The National Highways for Electric Vehicles (NHEV) expressed concerns about engaging with BluSmart, following allegations against its promoters. A recent meeting explored financial health and alternatives, involving public finance bodies. The focus remains on protecting the integrity of the electric mobility sector amidst ongoing investigations.

National Highways for Electric Vehicles (NHEV) is facing a dilemma in their dealings with BluSmart, an electric vehicle ride-hailing service, due to controversies surrounding the company's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The two, promoters of Gensol Engineering, are under a capital market ban over allegations of fund diversion.

An urgent meeting convened on Friday by the Ethical Governance Committee and NHEV - Procurement Committee, alongside Annuity Hybrid E-Mobility (AHEM) members and relevant financing institutions, assessed the fiscal stability of partners and service providers. This pilot initiative, initially supported by the Indian Ministry of Commerce and Industry, aims to transform existing highways into e-highways.

Ease of Doing Business, chaired by National Program Director Abhijeet Sinha, acknowledged the risks associated with BluSmart orders under current circumstances. To mitigate potential impacts on the electric mobility industry's progression, the body seeks collaborative discussions with Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (IREDA). Together, they aim to explore viable solutions that safeguard technical and customer service benchmarks or consider alternatives that could replace current procurement strategies.

The ongoing dialogue is crucial as both IREDA and PFC, major lenders to Gensol, have vested financial interests, having extended Rs 977 crore in loans, a significant portion devoted to the purchase of electric vehicles. The discussions will scrutinize BluSmart's plans to ensure fiscal compliance and responsiveness to regulatory inquiries, while preserving their operational capacity for future expansion under government-sanctioned cooperative endeavors.

(With inputs from agencies.)