Electric Vehicles In India To Get Easier Loan Schemes — Government’s New Initiative To Promote EVs

NEW DELHI: Electric Vehicles (EVs) in India will get easier loan schemes in the near future. In a bid to promote electric vehicles in the country at a faster rate, the Indian government plans to ensure simpler ways to avail loans to purchase a new EV. The concerned authorities have been preparing various measures in the past few years to enable faster adoption of electric mobility among the wider Indian mass.

ET Auto shares that the Prime Minister's Office (PMO) has already directed the Financial Services Department of India to make necessary measures in this regard. On the other hand, the Revenue Department has been notified to introduce better tax incentives along with faster depreciation on electric vehicles.

The first initiative will help individuals buy electric vehicles at a much lesser down payment. The second plan will encourage various companies and corporates to purchase a fleet of EVs at a lower upfront cost compared to a conventional petrol/diesel alternative.

The relaxed loan schemes for EVs are also aimed to multiply the sales of e-auto-rickshaws or electric three-wheelers. In a recent report, the Automotive Research Association of India (ARAI) stated that converting existing IC-engine three-wheelers to electric, is one of the best ways to promote rapid vehicle electrification — read more details here.

Furthermore, the Indian government intends to accelerate the use of cleaner alternative fuels such as LPG and CNG, for both passenger and commercial vehicles. In this regard, the Ministry of Petroleum and Natural Gas was advised to set up additional CNG/LPG/LNG fuel stations across India in the coming months.

Nripendra Mishra, the Prime Minister's Principal Secretary, has already asked the Department of Industrial Policy and Promotion to attain time-bound clearances from the Petroleum and Explosives Safety Organisation for installing additional electric-vehicle charging stations and CNG outlets at existing fuel stations in India.

Thoughts On Government's Push For More Electric Vehicles In India

The Indian government is really serious about promoting electric vehicles in the country and reducing the level of pollution faced in major cities in the process. As of now, the main challenge for EVs is the lack of enough supporting infrastructure (charging stations, service centres, etc.). However, things will change in due course of time. Let us know your thoughts in the comment section below.