EV Policy : Still under Formulation ?

 

 

 

 

Article link:

 

Govt takes second shot at hardselling EV policy - The Economic Times

 

 Extract from the article:

 

The government is making a renewed effort to promote its Electric Vehicle (EV) policy. This new push aims to hardsell the EV policy and emphasize its importance in the current scenario.

 

Union Minister Nitin Gadkari has highlighted the government's plan to establish an institution to fund businesses focused on electric vehicles while also introducing new financial instruments to facilitate lending for public transportation and commercial vehicles.

 

The government's initiative aligns with projections that India's electric vehicle financing industry could reach Rs 3.7 lakh crore by 2030, a significant portion of the current retail vehicle finance industry.

 

 

My Take:

 

1.   Mobilising Electric Vehicle Financing in India

 

The initiative to set up an institution to fund electric vehicle businesses resonates strongly with my past blog content.

 

In a blog post from July 2021, I discussed the government's plans to provide financial support to the EV sector. I highlighted the challenges faced by end-users in accessing affordable financing for electric vehicles due to high interest rates and insurance costs.

 

The current government's move to establish a dedicated institution echoes the solution I proposed earlier, emphasizing the importance of tailored financial mechanisms for the EV industry

 

 

 

2.   .Gathering Speed at Snails Pace?

 

Back in 2018, I talked about introducing tradable auto-emission coupons for automakers to promote the adoption of electric vehicles.

 

The recent announcement by the government to introduce similar coupons aligns with my suggestion from a few years ago.

 

By incentivizing automakers through tradable emission credits, the government is taking a step towards making electric vehicles more economically viable. This move reflects a proactive approach to accelerating the growth of the EV market, a concept I endorsed in my earlier blog post.

 

 

Call to Action:

 

To the Indian government, I urge a swift implementation of the established financial institution supporting electric vehicle businesses.

 

By expediting this process and ensuring efficient access to funding, the government can boost the growth of the EV industry and contribute significantly to India's sustainable transportation goals.

 

 

With regards,

 

Hemen Parekh

 

www.My-teacher.in

 

www.HemenParekh.ai  /  12  Nov  2024