Interest subvention plan for e-vehicles

The Delhi government on Wednesday signed an agreement with Convergence Energy Services Limited (CESL) for providing 5% interest subvention on loans for the purchase of electric rickshaws, autos, carts and light goods vehicles. It also signed an MoU with the firm for the installation of charging and battery swapping stations at cluster bus depots.

The interest subvention will help not just individual buyers but also fleet owners deploying vehicles for e-commerce, grocery or delivery industry, Delhi transport minister Kailash Gahlot said on Wednesday.

The interest subvention on loans on the purchase of electric vehicles in the particular category will be in addition to the purchase incentive of ₹30,000 and scrapping incentives of up to ₹7,500 provided under the Delhi government’s EV Policy, the transport department said in a statement. Through the scheme, an electric auto and electric light commercial vehicle will be able to avail up to ₹25,000 additional benefit, the statement said.

Currently, the rate of interest on EVs varies from 25-30% for some vehicle segments which makes owning an electric vehicle a cost-intensive proposition, it said. “The empanelled financial institutions will provide loans with a minimum 80% loan-to-value at interest rates of a maximum of 20% (including the interest subvention) for a loan tenure which is in the best interest of the buyer,’’ the statement said.

Gahlot said CESL has also agreed to procure, install, operate and maintain charging units and related infrastructure at 14 cluster bus depots at its own facility costs and expenses.