Govt Planning To Set Up Institution To Fund EV-Focused Businesses, Says Gadkari

Gadkari also said the government is planning to bring incentives for construction equipment vehicles to encourage them to become electric ones

The government is focused on ramping up the electrification of mobility in the country and having already set up several schemes and strategies to boost electric vehicle production and adoption, it is now planning to set up an institution to fund EV-focused businesses. This plan was revealed by Union minister Nitin Gadkari, while addressing the India Global Forum 2021 on Thursday.  

Gadkari also said the government is planning to bring incentives for construction equipment vehicles to encourage them to become electric ones.

According to a recent report, India’s electric vehicle financing industry is projected to be worth Rs 3.7 lakh crore in 2030, which would be about 80 per cent of the current retail vehicle finance industry.

The report titled ‘Mobilising Electric Vehicle Financing in India’, prepared by Niti Aayog and Rocky Mountain Institute (RMI) had also said that end-users currently face several challenges such as high-interest rates, high insurance rates, and low loan-to-value ratios.

The new move can help accelerate the adoption of e-mobility in India, a switch that the government has been vying for vehemently in recent times. Moreover, it can also boost the electric vehicle ecosystem in the country as it tries to keep up with the pace at which other countries are bolstering their electric mobility ecosystem. 

Gadkari noted that the government is giving the highest priority to electric vehicles adoption in India.

“India’s electric vehicles sector has been growing rapidly. The government is supporting domestic electric vehicle manufacturers,” he said.

Further, Gadkari pointed out that battery cost is 50 per cent of an electric vehicle and India’s research institutions are working on an alternative battery technology for such vehicles.

“We have huge domestic demand for electric vehicles. Many startups have started producing electric vehicles,” he said.

The minister noted that due to the import of petroleum products, India is facing problems of pollution.

“We will use solar energy for charging batteries of electric vehicles,” Gadkari said, adding that currently, 69,000 petrol stations have electric vehicle charging facilities.