Officials at the Small Industries Development Bank of India (SIDBI) are interested in launching a new iteration of the Mission 50K-EV4ECO initiative, designed to strengthen the Electric Vehicle (EV) ecosystem in India.
As India’s automotive sector confronts challenges with declining demand for electric vehicles (EVs), the Federation of Automobile Dealers Associations (FADA) Maharashtra Chairperson Sachin Mahajan reports that the industry is poised to experience a significant boost. Based on his discussions with Piyush Goyal, the Union Commerce & Industry Minister, and Ramdas Athawale, the Union Minister of State for Social Justice & Empowerment, an estimated 200,000 electric vehicles are expected to be demanded over the next two years through various initiatives. These include the PM Solar2EV Project for Social Justice, which Athawale has endorsed. This project is set to drive demand for electric vehicles across different segments, such as two-wheelers, three-wheelers, fleet passenger cars, light electric trucks, and buses, via social justice schemes.
Unveiled by the India Social Justice Ministry in February 2024, the Solar2EV project aims to integrate solar energy with electric vehicle charging, bolstering India’s shift towards sustainable transportation. This initiative was further solidified in a joint meeting with Ministers Goyal and Athawale, showcasing a strong collaborative effort within the government.
In parallel, there’s a move to rejuvenate the financing mechanisms for EV purchases. According to Mahajan, the Small Industries Development Bank of India (SIDBI) is contemplating a new edition of the Mission 50K-EV4ECO, which targets reinforcing the EV infrastructure by facilitating both direct and indirect loans through Micro, Small and Medium Enterprises (MSMEs) and Non-Banking Financial Companies (NBFCs). This is seen as a stepping stone towards the SIDBI-World Bank EVOLVE program, with SIDBI’s senior officials, including Dr Rajendra Prasad and Pawan Kumar Bharti, acknowledging the potential for expanding similar programs.
The Modi 3.0 government’s inter-ministerial cooperation, aimed at empowering underprivileged youth and promoting entrepreneurship among women and marginalized communities, is another encouraging sign for the industry. Mahajan highlighted this collaborative spirit during his participation in the meeting held at the new Parliament House, expressing gratitude for the supportive stance of the industry, led by the Society of Indian Automobile Manufacturers (SIAM) and other major stakeholders.
Moreover, Mahajan discussed the forthcoming impact of the electric revolution on agricultural markets, where light electric trucks are expected to significantly reduce delivery costs by 35-40 per cent, according to Athawale. This initiative aligns with the broader goals of various state corporations in Maharashtra, which are integrating their efforts to employ marginalized individuals in the gig economy, including those with disabilities.
Additionally, the Social Ministry is considering partnerships with e-commerce giants like Flipkart and Amazon to adopt an ownership-cum-driver model for electric vehicles. This strategy aims to leverage EVs to lower pollution and support the environment, thereby aligning with broader sustainability goals. These developments represent a concerted effort across multiple sectors and government bodies to enhance the electric vehicle ecosystem and support India’s transition to a greener future.
