SIDBI mission 50K-EV4ECOs to charge up electric vehicle space to lower the cost of capital for buying electric vehicles (EVs), particularly 2 and 3 wheelers. They want to make it easier for small businesses to get loans to buy electric vehicles and develop charging infrastructure.
The Indian government is working with an organization called SIDBI to help people buy electric vehicles and build charging stations. They want to make it easier for small businesses to get loans to buy electric vehicles and develop charging infrastructure.
The program is called Mission 50K-EV4ECO and it has two parts: direct lending and indirect lending. Direct lending means that SIDBI will give loans to small businesses for buying electric vehicles and building charging stations.
Indirect lending means that SIDBI will work with other lenders to make sure that small businesses have access to loans for these things. This program is just the start of a bigger program called EVOLVE which will be run by SIDBI and the World Bank.
When talking to different people involved in the electric vehicle industry, it was found that small and medium-sized businesses called MSMEs and non-banking finance firms called NBFCs have trouble getting loans with reasonable interest rates.
This makes it difficult for them to do their work. Banks are also hesitant to finance these projects because they see them as risky. The high cost of borrowing money also makes it hard for NBFCs to operate, which drives up the prices of electric vehicles for people who want to buy them.
“NBFCs are a crucial aspect of SIDBI’s enterprise growth strategy and have shown a willingness and capacity to work with businesses at the base of the pyramid, especially in places where credit is scarce,” Sivasubramanian Ramann, the SIDBI’s chairman and managing director, claims.
As SIDBI mission 50K-EV4ECOs to charge up electric vehicle space with a new financing solution, it is in line with the national goal of having 30% EVs by 2030 (EV30@30).
To support the entire EV value chain, SIDBI has launched Mission 50K-EV4ECO. However, they are facing difficulties in convincing banks to lend money to MSMEs, aggregators, and other important players in the EV value chain.