Govt asks banks to extend long-term loans for e-mobility

In a bid by the Centre to identify and address hindrances to the growth of electric vehicles (EVs), central policy think tank NITI Aayog and the Department of Financial Services (DFS) have requested banks to extend longer-tenure loans with easier conditions to electric mobility companies, said a senior government official.

- DHRUVAKSH SAHA

"The DFS and NITI Aayog spoke with banks and urged them to extend the tenure of loans for e-mobility, especially e-trucks and e-buses. The feedback has largely been positive and we are hopeful that there will be progress on this," Sudhendu J Sinha, programme director for e-mobility at NITI Aayog told Business Standard.

An extension of tenure on loans to procure e-buses and e-trucks would bring down the equated-monthly instalments (EMIs) for fleet owners and operators. It would enable faster transition to e-mobility in the mass goods and passenger transit spaces, which are among the most polluting in the internal combustion engine (ICE) segment.

"One of the feedbacks from financial institutions was that if the warranty on the battery can be extended, it would make it easier to increase the tenure of a loan," Sinha added.