SIDBI Launches 'Mission 50K-EV4ECO' to Boost Financing for Electric Vehicles

NEW DELHI- Small Industries Development Bank of India (SIDBI) has announced the launch of a pilot scheme called 'Mission 50K-EV4ECO' aimed at strengthening the electric vehicle (EV) ecosystem in Mumbai. 

The pilot scheme, which is a precursor to the EVOLVE scheme by SIDBI-World Bank, has two components: direct lending and indirect lending.

Access to adequate finance, including competitive interest rates, has been identified as a major challenge faced by Micro, Small, and Medium Enterprises (MSMEs) and Non-Banking Finance Companies (NBFCs) operating in the EV ecosystem.

Under direct lending, SIDBI will provide loans directly to eligible MSMEs, including aggregators, fleet operators, and EV leasing companies, for the purchase of electric vehicles and the development of charging infrastructure, including battery swapping. 

The indirect lending component will target NBFCs, including small unrated focused, and emerging NBFCs, actively engaged in EV financing, to provide access to funds and reduce the landed cost of EVs.

Sivasubramanian Ramann, Chairman and Managing Director of SIDBI, stated that MSMEs, aggregators, and other crucial actors in the EV value chain have been facing challenges in obtaining financing from financial institutions, and the Mission 50K-EV4ECO scheme aims to give a developmental push to the EV sector in line with India's national mission of EV30@30, which aims to achieve 30% electric mobility by 2030.

Sudhendu Sinha, Advisor (Infra and E-Mobility) at NITI Aayog, commended SIDBI's initiative in launching the Mission 50K-EV4ECO scheme and highlighted the importance of the transition to EVs in achieving India's climate change mitigation targets. 

He also emphasized the need to prioritize the three-wheeler segment and expressed confidence that the pilot scheme will enable quick replicability and scalability through multilateral support.