The Reserve Bank of India is examining a proposal from the government’s policy think tank Niti Aayog to classify loans for electric vehicle purchases under the priority sector lending (PSL) segment in order to accelerate the country’s adoption of electric vehicles. Continue reading to learn more about the Niti Aayog’s proposal to the RBI.
Nitin Gadkari, the Union Minister of Transport, recently stated that the cost of electric vehicles will decrease in the coming years. The Niti Aayog has made a proposal in this regard.
The idea was given by the government’s policy think tank, according to Niti Aayog chief executive Amitabh Kant. If the proposal is approved, the segment will benefit from lower interest rates. Currently, the loans are supplied within the auto retail category, however, the lenders for financing electric vehicles may differ.
He also noted that it will aid in the reduction of carbon emissions. “The inclusion of EVs under PSL would not only reduce the cost of finance but also provide finance to more people, thus increasing penetration of EVs in India,” the financial daily quoted Kant as saying. “Our view is that there is a case for this in the context of the impending climate change crisis and India’s recent commitments at COP26 in Glasgow.”
Because of their poor quality, some banks have had bad experiences with financing the early e-rickshaws that were powered by lead-acid batteries. Because their residual worth was low, financial institutions had to pay losses in the event of default,” Kant explained.
The NITI Aayog launched the ‘Shoonya’ Campaign in September, with the help of US-based RMI and RMI India, to promote zero-pollution delivery vehicles by working with consumers and the industry. The campaign aims to increase consumer awareness of the benefits of zero-pollution delivery and accelerate the adoption of electric vehicles (EVs) in the urban delivery market.
A corporate branding and certification scheme is being launched as part of the campaign to recognize and promote the industry’s efforts to migrate to EVs for final-mile delivery. Data such as vehicle kilometers electrified, carbon savings, criteria pollutant saves, and other advantages from clean delivery vehicles will be shared through an online tracking platform.