NITI Aayog for including EVs in priority sector lending

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New Delhi, January 21

Pointing out that retail finance is holding back the sale of electric vehicles (EVs), a report co-authored by Niti Aayog has suggested their inclusion in RBI’s priority sector lending (PSL) guidelines.

“Financial institutions have an important role to play in accelerating the adoption of EVs in India and supporting the decarbonisation of road transport. RBI’s PSL mandate has a proven track record of improving the supply of formal credit towards areas of national priority. It can provide a strong regulatory incentive for banks and NBFCs to scale their financing to EVs,” said NITI Aayog CEO Amitabh Kant.

The report has highlighted five parameters that may be factored in for priority sector lending. These are: socio-economic potential, livelihood generation potential, scalability, techno-economic viability and stakeholder acceptability.