Soon a government institution to finance companies focused on electric vehicles
Amid climate change, the Covid-induced economic downturn, and rising fuel prices, the Indian government aims to make the electric vehicle business in India more lucrative and easier to set up. For the same, the government plans to create an institution to finance electric vehicle (EV) companies.
Union Minister Nitin Gadkari (Minister of Road Transport and Highways) announced that the government plans to create an institution to finance companies focused on electric vehicles. The government also aims to help provide loans to the public transport and commercial vehicle segment and for this, the government will facilitate new financial instruments for lending to the public transport and commercial vehicle segment.
The minister, speaking to India’s 2021 Global Forum on Thursday, said the government also plans to encourage construction equipment vehicles to switch to electricity and promises to push them.
Last month, the central government increased the subsidy on electric two-wheelers, after which the amount of the incentive to buy electric two-wheelers was increased to Rs 15,000 per kWh, or Rs 5,000 per kWh more than the previous subsidy rate.
In addition, Indian research institutes are also working on alternative battery technology for electric vehicles, the minister said. Notably, the cost of the battery is 50% of the total cost of an electric vehicle.
According to a recent report, India’s electric vehicle finance industry is expected to be worth Rs 3.7 lakh crore in 2030.