NEW DELHI: Getting loans from banks for buying electric vehicles is likely to get easier as the government has decided to take measures to facilitate lending by banks for all varieties of these vehicles including erickshaws and e-autos.
Sources said prime minister’s office (PMO) has directed the department of financial services to take the necessary steps and has also asked the revenue department to offer attractive tax incentives—including faster depreciation on EVs—to encourage corporates to go electric rather than buy conventional petrol and diesel vehicles.
Officials said while the first measure will help people to buy EVs by making less down payment, the second initiative will convince companies to buy quality electric vehicles as the accelerated depreciation will bring major relief in the upfront cost of the vehicles by providing a tax break.
Moreover, along with its push to increase e-mobility in the country, the government has decided to accelerate other cleaner fuels for heavy vehicles on highways and personal vehicles in cities. The petroleum and natural gas ministry has been asked to set up LNG stations on highways and to increase the network of CNG stations in cities by March.
According to the minutes of the latest meeting chaired by PM’s principal secretary Nripendra Mishra, the department of industrial policy and promotion has been asked to give time-bound clearances from Petroleum and Explosives Safety Organisation for installation of additional electric vehicle charging stations and CNG dispensing units at existing fuel pumps. The petroleum ministry has been expanding the network of CNG stations across cities to make the fuel available.