Indian Govt Will Launch Fast Chargers For Electric Vehicles; Fast Loans For EVs Proposed
Recently at Glasgow Climate Change Conference India has set itself a target of lowering the total projected carbon emissions by 1 billion tonnes till 2030, reducing the carbon intensity of the economy by less than 45%, and cutting emissions to net-zero by 2070. And it looks like all the departments in the government has taken up the job very much seriously.
Loans for Electric Vehicles to come under Priority Sector Lending?
In the latest development to make India a leader in EV adaption, the Reserve Bank of India is considering a proposal from the Niti Aayog to categorize loans to purchase electric vehicles under the priority sector lending (PSL) segment.
Acceptance of this proposal will help the segment get credit at lower interest rates. Currently, these loans are available under the auto retail category, but lenders are wary about financing the purchase of electric vehicles (EVs) as they are unsure about the risks in a segment that is still at a nascent stage.
Niti Aayog chief executive Amitabh Kant said, “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,” Kant told ET. “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.”
It should be noted that under the PSL framework, 40% of lenders’ total credit must be compulsorily loaned to specific sectors. Various sectors such as agriculture, small businesses, export credit, education, housing, social infrastructure, and renewable energy are categorized as priority sectors.
Govt trying to improve EV infrastructure as well
India is adapting to EVs at an exponentially high rate. In the first half of the current fiscal year, EV sales more than tripled to 118,000 units. Industry insiders attribute the increase in EV sales to both demands- and supply-side factors.
Outreach by manufacturers improved charging infrastructure, price parity with conventional vehicles due to federal incentives, and falling battery prices are driving sales.
Recently, Union Minister of Heavy Industries Mahendra Nath Pandey said that the Automotive Research Association of India (ARAI) is developing fast chargers for electric vehicles to address the issue of charging infrastructure
According to the minister, ARAI has already developed a prototype of the product but is not yet market-ready. He informed that the ARAI has been asked to complete the project by October 2022, so that it can be made available to the customers by December.
It should be noted that the fast chargers will address the issue of charging infrastructure and boost demand for battery-driven vehicles.