News Update

Govt Plans On Funding Businesses Focused On Electric Vehicles By Setting Up Institution

• ByStartupStory     |    July 2, 2021

Govt plans on funding businesses focused on Electric vehicles, it is to set up an institution  to facilitate new financial instruments for lending to the public transportation and commercial vehicle segment, Union Minister, Nitin Gadkari said addressing the  India Global Forum 2021 on Thursday. He further added, the government is planning to bring incentives for construction equipment vehicles to encourage them to become electric ones. As per a report, recent report, Mobilising Electric Vehicle Financing in India’ by Niti Aayog and Rocky Mountain Institute (RMI) India’s electric vehicle financing industry is projected to be worth Rs 3.7 lakh crore in 2030, which would be about 80 percent of the current retail vehicle finance industry.

Further, Nitin Gadkari, Union Minister also said, “The government is planning to set up a financial institution to fund business with a focus on electric vehicles and facilitate new financial instruments for lending to the public transportation and commercial vehicle segment,” adding on that,” battery cost is 50 percent of an electric vehicle and India’s research institutions are working on an alternative battery technology for such vehicles.”

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