SIDBI stated that the program would provide MSMEs with access to reasonable commercial funding for EV loans, as well as hosting telematics that might assist lower financing costs as well as offer data for additional financial services. SIDBI, India's primary lender to SMEs, announced on Monday that it is launching the mission EVOLVE (Electric Vehicle Operations as well as Lending for Vibrant Ecosystem) in collaboration with NITI Aayog, World Bank, Korean-World Bank, as well as Korean Economic Development Cooperation Fund (EDCF) to provide financing to MSMEs in the EV space.
S Ramann, CMD of SIDBI, emphasized the importance of developing an EV ecosystem database to understand better and prolong EVs' life. "The data is going to be readily accessible to policymakers to assess gaps and to develop the EV ecosystem further," he explained.
Importantly, SIDBI announced in April this year a pilot project Mission 50,000-EV4ECO under the leadership of NITI Aayog to assist MSMEs that are having difficulty accessing loans to buy EVs that include two-wheelers, three-wheelers, including automobiles for their everyday business and commercial use.
The mission's goal is to fund 50,000 electric vehicles. SIDBI announced on Monday that sanction letters' for the 50,000-EV4ECO mission had been turned to the businesses Aristo Securities, Mufin Green Finance, EV Motors, Techsofin, and others in order to put around 5000 2/3w EVs on the road in the near future. Furthermore, it stated that bids regarding another 25000 EVs were currently in the works.
In accordance with the Association of Manufacturers of Electric Vehicles (SMEV), EV sales in India reached one million in the fiscal year 2022-23, with 11,52,021 units sold, up 58% from 7,26,861 units sold in FY22. With 7,26,976 machines sold in FY23, two-wheelers had the biggest proportion of 62%.
The SIDBI Mission50K-EV4ECO program is a move in the correct approach to help India's commitment to EV30@30. This will make it possible to obtain reasonable financing for electric automobiles. The sanction provided to beneficiaries under both SIDBI schemes is a welcomed effort, but there is still a long way to go in this EV transitional journey, according to Sudhendu Sinha, Adviser (Infra & e-mobility), NITI Aayog.
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