India Working to Ease Financing of Electric Vehicles: Govt Official

The center is working towards mechanisms to ease finance of electric vehicles in line with India’s 2070 net-zero goal, a senior government official said on Monday.

Decarbonising the Commercial Transport Sector is also Crucial from a Public Health Perspective. Heavy Commercial Vehicles (HCVs) Such as Buses, Trucks, and Dumpers are Responsible for Over 70% of 70% of Vehicular Particulate Pollution (PM2.5 and PM10) in India, Despite Being Less 2% of the Total Vehicle Population, a Recent Study by the Center for Study of Science, Technology and Policy (CSTEP) Found.

“We at the government of India have been (Internal Combustion Engine) Vehicles, While Repayment Tenures are Shorter. Lending, “Hanif Qureshi, Additional Secretary at the Ministry of Heavy Industries, said a session at the Indian clean transportation summit organized by the internet (ICCT) in the National Capital.

The Senior Officer said that the ministry, the department of financial services of finance ministry, SIDBI (Small Industries Development Bank of India), and Nabard (National Bank for Agriculture and Rural Development) Have prepared a working paper on the issue and are exploring instruments that can address the needs of the industry. He said one solution being considered is a security mechanism where the risk will be shared between lenders and development financial institutions such as Sidbi.

Qureshi said various government measures towards Ev Adoption are already showing encouraging results, even thought India has been a late entran nations to adopt cleaner transportation strategies, FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) 1 and 2 Schemes Launched in 2015 and 2019, Followed by the “PM Electric Drive Revolution innovative Vehicle Enhancement (PM E-Drive E-E-Drivete) Scheme in 2024.

He said the 2021 production linked incentive (pli) scheme for electric vehicles (EVS) with an allocation of 25,938 Crore Over five years was aimed at attracting investment 42,000 Croes, and Alredy More Than Half of that, Around 27,000 croes of investment into manufacturing has been made. He said this has addressed the issue of Local Manufacturing and Creating Jobs. Similarly, He said the pli scheme for advanced chemistry cells for ev batteries have also shown results. “Thought the scheme targeted a capacity of 50 gigawatt-Hours (GWH) but it is expected that a capacity of 100 gwh will be setable by the time the time the scheme is over,” He Said.

Currently, India’s Electric Vehicle (EV) Adoption Rate in the Commercial Category is seeing rapid growth ovening to a low base, with a 122.5% year-or-yaar case recorded in June, accorded By the federation of automobile deals’ associations (FADA).