India: MEAL E-Mobility (an investment through BII India EV LLP) (AIIB-000860)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 30, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
BII India EV LLP
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 53.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 53.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Feb 6, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to AIIB, the objective of this project is "to promote adoption and acceleration of e-mobility by developing a market for four-wheeler passenger electric vehicles in India". 

The investment is expected to result in reduction of greenhouse gas emissions resulting from adoption of electric four-wheeler vehicles instead of conventional fuel vehicles. The investment will also result in direct job creation at MEAL. For further information on the expected results, refer to https://www.bii.co.uk/en/our-impact/investment/mahindra-electricautomobile-limited-investment-01/

 

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

M&M has announced an investment of INR12,000 crores in MEAL to fund its EV journey over the next three years. In July 2022, M&M and BII announced a partnership to accelerate the availability and adoption of EVs in India and other markets. This partnership consisted of an anchor investment into MEAL, with BII committing up to INR1,925 crore to the venture, of which INR1,200 crore was invested in September 2023. The partnership also comprised a commitment to work jointly to bring other like-minded investors into EV financing in future.

The next investor to join the partnership was Temasek in 2023. Subsequently, BII decided to complete its remaining commitment into MEAL through a final tranche of INR650 crores.

This investment shall be made through BII managed investment vehicle, BII India EV LLP, which in turn shall be financed by AIIB including third-party investors. AIIB has committed to invest USD50 million of equity in this investment vehicle, BII India EV LLP which already has an equity stake in MEAL. The Bank shall also fund up to USD3 million of its pro-rata share of related costs which could be incurred during the investment period. AIIB’s proposed total equity funding in the Project is USD53 million.

The investment by AIIB does not change the shareholders of MEAL, which remain M&M, Temasek, BII and BII India EV LLP. AIIB is a shareholder of BII India EV LLP.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The transaction (the "Project") entails an equity investment of USD50 million in a British International Investment ("BII") managed vehicle, BII India EV LLP which already has an equity stake in Mahindra Electric Automobile Limited ("MEAL"), a subsidiary of Mahindra & Mahindra Limited ("M&M"). MEAL was incorporated in India in 2022 to house M&M's four-wheeler passenger utility electric vehicle (EV) business. In May 2024, M&M announced an investment of INR12,000 crores in MEAL to fund its EV journey over the next three years.

M&M group is one of the largest conglomerates in India with 50+ years of experience. It operates 20+ businesses, with 260,000 employees in 100+ countries, 69 manufacturing facilities and 21 research and development centers across 7 countries. The group has a strong presence in sectors such as automotive, farm equipment, renewable energy, logistics, hospitality and real estate. M&M is the market leader in India in the sports utility vehicles category with a revenue market share of ~21.9% as of September 2024.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
BII India EV LLP Investor Finance invests in Mahindra Electric Automobile Limited Subsidiary Transport
British International Investment Plc Investor Finance owns BII India EV LLP Investor Transport
Mahindra & Mahindra Parent Company Transport owns Mahindra Electric Automobile Limited Subsidiary Transport
Tamasek Investor Finance invests in Mahindra Electric Automobile Limited Client Transport

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Asian Infrastructure Investment Bank

Prakash Bajoria

Senior Investment Officer

prakash.bajoria@aiib.org

 

British International Investment

Samir Abhyankar

Managing Director and Head of Financial Services

sabhyankar@bii.co.uk

BII India EV LLP

Matt Robinson

Head of Private Capital Mobilisation

mrobinson@bii.co.uk

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

How it works

How it works