×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 11 March, 2021

  • 5 Min Read

Mobilising Electric Vehicle Financing in India Report by NITI Aayog

Mobilising Electric Vehicle Financing in India Report by NITI Aayog

NITI Aayog and Rocky Mountain Institute(RMI) India jointly releases a new report titled ‘Mobilising Electric Vehicle Financing in India’.

Aim:

  • The report highlights the role of finance in India’s transition to electric vehicles(EVs).
  • Further, the report also identifies solutions for capital and financing to aid in India’s EV transition.

What does the report say about Electric Vehicle Financing?

  • India’s Electric Vehicle ecosystem has so far focused on overcoming adoption hurdles.
  • These hurdles are associated with technology cost, infrastructure availability, and consumer behaviour.
  • However, financing is the next critical barrier that needs to be addressed to accelerate India’s electric mobility transition.

According to the report, the transition to Electric Vehicles(EVs) will require a capital investment of over Rs 19 lakh crore .

This has to be spent on electric vehicles, charging infrastructure, and batteries over the next decade.

  • Moreover, India’s Electric Vehicle financing industry is projected to be Rs 3.7 lakh Crore in 2030. It is about 80% of the current size of India’s retail vehicle finance industry.

Suggestions: The report has provided several solutions that financial institutions can adopt in catalysing Electric Vehicle financing.

  • Inclusion of EVs in Priority sector lending
  • Interest rate subvention
  • Product guarantees and warranties: The manufacturers of EVs can provide guarantees and warranties on the performance of their products.
  • Risk-sharing mechanism (government and multilateral-led): Partly or entirely covering the possible losses associated with Electric Vehicle financing can build trust in the sector.
  • Secondary market development: Government can help develop a secondary market for electric vehicles.
    • This will improve the resale value of EVs and improve their bankability.
  • Digital lending: The loans for EVs can be provided digitally. This will help in overcoming the operational and logistical challenges of Electric Vehicle financing.
  • Open data repository for EVs: Financial Institutions(FIs) need access to data on EV specifications, actual charging costs, and operating expenditures.
    • This will help institutions accurately assess risk, determine appropriate interest rates, and design effective leasing programmes.

Source: TH


Formation Day

On 1st November, eight Indian states—Andhra Pradesh, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Punjab, and Tamil Nadu—along with five Union Territories—Andaman and Nicobar Islands, Chandigarh, Delhi, Lakshadweep, and Puducherry—celebrate their Formation Day. This date marks an important milestone in India

Turtle (Kachhua) Wildlife Sanctuary

The Turtle Wildlife Sanctuary, also known as the Kachhua Sanctuary, is located in the Varanasi district of Uttar Pradesh. It is recognised as India’s first freshwater turtle wildlife sanctuary, established to conserve endangered turtle species and support the ecological health of the Ganga River. Location and Extent The sanctuary co

Introduction of AI and Computational Thinking (CT) in

The Ministry of Education plans to introduce Artificial Intelligence (AI) and Computational Thinking (CT) from Class 3 onwards in the 2026–27 academic year. This initiative is part of the National Curriculum Framework for School Education (NCF-SE) 2023 and aligns with the National Education Policy (NEP) 2020. The aim is to prepare student

Sal Tree

Scientists from the Environment Department of Himachal Pradesh University (HPU) in Shimla have recently revealed that the Sal tree (Shorea robusta) is the most effective natural air purifier for combating rising pollution levels. Their findings highlight the tree’s superior capacity to trap dust, absorb gases, and cleanse the air compared

US Resumes Nuclear Weapon Testing

The President of the United States has ordered the resumption of nuclear weapon testing after a gap of 33 years, the last test being in 1992. This decision marks a significant shift in global nuclear policy and has far-reaching implications for geopolitics, the environment, and international security. Status of Global Nuclear Weapon Testing

DNA

03 Dec,2025

Toppers

Search By Date

Newsletter Subscription
SMS Alerts

Important Links

UPSC GS Mains Crash Course - RAW Prelims Answer Key 2024