Small Industries Development Bank of India (SIDBI) has resolved to prioritise the national mission for e-mobility, i.e. EV30at30, through its Mission EVOLVE (Electric Vehicle Operations and Lending for Vibrant Eco-system), with support from NITI Aayog and financial assistance from The World Bank, Korea-World Bank Partnership Facility and Korean Economic Development Cooperation Fund (EDCF).
SIDBI conceptualised EVOLVE and shaped it with inputs from 550+ stakeholders covering all regions of the nation. It has already launched two financing schemes — direct lending to MSMEs and a scheme for lending to NBFCs.
Addressing the challenges of high-interest rates and limited availability of financing to the EV sector, EVOLVE unlocks access to affordable commercial financing for EV loans, thereby fostering an organic transition to sustainable electric vehicles, including hosting of telematics that could help reduce financing costs and provide data for other financial services.
To deliberate on the above broad themes and launch two products of EVOLVE for energising EV Eco-System under the first of the schemes to finance 50,000 EVs (‘50K-EV4ECO’), a Stakeholder Consultation was organised, attended by a large number of key representatives from EV eco-system. During the Q&A session, clarifications were rendered on the two products.
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Kim Kisang, Chief Representative, EDCF, said that Korean Government will extend support for the Evolve programme, which will address the key barriers to the adoption of EVs in India and knowledge sharing between both countries.
Gerald Ollivier, Lead Transport Specialist, The World Bank, gave his perspective towards the journey of EVOLVE programme and the move from initial transformation to scaling up of the use of EVs in the country. The programme is designed to support around 1.5 million EVs and build the eco-system in the mobility segment. The approach will seek to leverage the carbon credit generated by the programme, which may be used to mobilise for the benefit of the beneficiaries.
S Ramann, CMD, SIDBI, highlighted the opportunities that accompany EVs and emphasised creating a database of the EV eco-system to understand and extend the life of the EVs and also expressed its commitment to increase the finance flow towards creating green assets. The data would be available for policymakers to assess the gaps and further strengthen the EV ecosystem. SIDBI will keep playing the developmental role in the niche and green activities with multilateral and bilateral support.
Sudhendu Sinha, Adviser, Infra & e-mobility, NITI Aayog, said, “To support India’s commitment to EV30@30, the SIDBI Mission50K-EV4ECO scheme is a step in the right direction. This shall enable access to affordable financing for electric vehicles. The sanction offered to beneficiaries under both the schemes of SIDBI is an appreciated effort, and many more miles to go in this EV transitional journey.”