Banking on E-Vehicles in India : Loans, Subsidies..

NITI Aayog has exposed a report named 'Banking on Electric Vehicles in India' on January 22, 2022, which expresses the need and importance of the participation of Electric Vehicles in RBI priority-sector lending guidelines.

Banking-on-Electric-Vehicles-in-India
Banking on Electric Vehicles in India


NITI Aayog Presents Banking on Electric Vehicles in India

In the last few years, we have seen an exponential growth in electric vehicles in India. Electric two-wheelers, three-wheeled taxis, buses etc. are getting increasing popularity every day. The government of India is also promoting e-vehicles by providing subsidies on the purchase of electric cars and other incentives. There are many advantages of using an electric vehicle as a personal or commercial transport. They are eco-friendly, produce zero noise pollution and operate on low maintenance costs. Moreover, they are also cost-effective and save our fuel expenses. Now let’s take a closer look at various ways in which electric vehicles can be useful for us in the near future!

Nowadays, Banks and Non- Banking Finance Corporations hesitate to provide loans for Electric Vehicles. That's Why NITI Aayog and RBI are trying to include E-vehicles sector into priority sector. And when we look at the Indian Banking sector positively, it has the capacity to provide loans up to Rs.40,000 crore till 2025 and up to Rs.3.7 Lakh crores till 2030 for E-vehicle sector.
SBI also playing essential role in providing loans for EVs. SBI has declared 7.25% to 7.60% interest rate on the loans offered for EVs under Green Car Loan Scheme.


Government’s Efforts in Electric Vehicle Promotion
The Indian government has put a lot of effort in promoting electric vehicles as a means of personal and commercial transport. Several state governments have provided subsidies on the purchase of electric vehicles along with other incentives like free parking, lower road tax etc. Moreover, the central government has also partnered with Tesla to open electric vehicle charging stations across major Indian cities. This is expected to rise the speed of adoption of electric vehicles in India significantly.


NITI Aayog & RMI India releases report ‘Banking on Electric Vehicles in India’
Recently, NITI Aayog along with Rocky Mountain Institute India (RMI India) released an insightful report on the future of electric vehicles in India. The report is titled ‘Banking on Electric Vehicles in India’. The report includes 3 ways to prepare for the future of electric vehicles in India. The report suggests that instead of converting to internal combustion engines, it is much more beneficial to switch to electric vehicles. It goes on to explain the benefits of using electric vehicles as well as the challenges that may arise in the process. This report highlights the fact that it is important for all of us to adapt to the change in technology and prepare for the future ahead.


Benefits of Switching to Electric Vehicles
There are several benefits of switching to electric vehicles. As mentioned above, they are eco-friendly and produce zero noise pollution. Electric vehicles are also cost-effective and save our fuel expenses by 80%. Moreover, they have a low maintenance cost as they don’t have any moving parts. However, E-Cars have a lower maximum speed compared to conventional vehicles. In addition, the long charging period of an electric car is a major concern. If we wish to switch to electric vehicles, we must be willing to make certain sacrifices.


E-Buses: The Future of Public Transport in India
Public transport is the primary mode of travel for many people in India. E-Buses are expected to become the future of public transport in India. E-Buses are more environment-friendly, less noisy and have a long battery life. The average cost of operating an E-Bus is estimated to be 40% less than the cost of running a conventional diesel bus. These buses can have a 60-80 km range between charges. E-Buses can be charged at the depot or at the end point of the route using an overhead charging system.


E-Cars: A Decent Option for Personal Transportation
Electric cars are not only eco-friendly but also cost-effective. According to a Tesla report, an electric car will cost you around 1.26 lakh per year to drive while a petrol car will cost almost 1.78 lakh per year. This is because you don’t have to spend on petrol or other fuels when you are using an electric car. They are also very convenient to drive. You can plug in your car to a charging station at home, office or public parking lot. Moreover, you can also rely on a long-range car. These cars can have a range of 650 km on a single charge. You can also opt for a hybrid electric car which combines the best of both electric and petrol cars. Such cars are more environment-friendly and can save a lot of fuel.


Conclusion
The Indian government has put a lot of effort in promoting electric vehicles as a means of personal and commercial transport. Several state governments have provided subsidies on the purchase of electric vehicles along with other incentives like free parking, lower road tax etc. Moreover, the central government has partnered with Tesla to open electric vehicle charging stations across major Indian cities. This is expected to rise the speed of adoption of electric vehicles in India significantly. Moreover, Electric buses are expected to become the future of public transport while Electric cars are a decent option for personal transportation. It is important to switch to electric vehicles as they are cost-effective and eco-friendly.