New Delhi: Including electric vehicles in the Bank of India Bank of India (PSL) reserve guidelines (PSL) can complete the $ 300 million facility and encourage the financial sector to mobilize the required capital, recommend the Niti Aayog report.
“Inclusion for retail loans to EVS has the potential to increase investor confidence by providing market signals ongoing government commitments to this sector,” According to the Niti Aayog report, RMI, and RMI India launched on Friday, “it can also ensure a quick transition And just by giving a mandate for financial institutions to direct credit to the segment and use cases where credit shortages remain even though there is a convincing economy, “the report said.
To operate the concept including EVS in priority sector loans, central government policy makers can relate to Indian reserve banks to design and issue the necessary guidelines.
Financial institutions and EV ecosystems can contribute by describing how PSL inclusion can affect their growth and investment plans, the report said.
“While this intervention promises, it will not complete the challenges of financing only and various persistent risks for permanent EV financial.
Policies and additional steps to overcome these challenges include state-level fiscal incentives, open data on vehicle performance, repurchase programs LED industry, and loan guarantee facilities, “according to the report.
The cumulative investment in the transition of Indian Electric Vehicle (EV) can be equal to Rs 19.7 lakh Crore ($ 266 billion) between 2020 and 2030, highlighting the need for higher liquidity and lower capital costs for EV assets and infrastructure.
The report said that given the accuracy of EV and adoption technology, banks and non-banking financial companies (NBFCs) did not lend to EV because of the risk of assets and related business models.
These risks are real (for example, the uncertainty of the resale value) and felt (for example, product quality).
As a result, if financing is available, EV buyers cannot obtain terms (i.e., interest rates and tenures) which are proportional to ice vehicles, according to the report.