World Bank $1 billion fund for EVS to be rolled out by April 2023

THE MUCH AWAITED financial support of US$1 billion from World Bank is set to be rolled out in the coming few months.

- Amit Vijay M

The first tranche of $250 million is likely to come through in two parts - of $125 million each. One for the NBFCs to fund the end user and the other for the EV ecosystem, that is battery manufacturers, makers of charging equipment, end-of-life battery recyclers or repurposing experts and other associated EV component makers.

Autocar Professional learns that of the $250 million (Rs 2,064 crore), $125 million (Rs 1,034 crore) will be earmarked for NBFCS to finance primarily the NINJA segment (No Income, No Jobs and No Asset) segment of mass mobility led gig workers and consumers of electric two-wheelers and three-wheelers with various Drivercum-owner model for e-commerce players and for large fleet operators. The fund is likely to roll out by April 2023.

The balance amount will be offered by SIDBI at a 9 to 10 percent coupon rate to like-minded financial institutions and NBFCs to further lend to the EV ecosystem players including battery manufacturers, charging equipment manufacturers, recyclers and other EV component makers.

This fund will ensure guarantee against defaults on loans and it plans to offer credit lines at two to three percent lower than existing borrowing rates, say sources.

Autocar Professional also reached out to Delhibased officials of SIDBI overseeing this project who declined to comment on the development but did not deny that such a move was in the works.