EV Buyers to get additional relief of Rs 25000 over and above the RS 30000 purchase incentive and scrapping incentive
Delhi Government becomes the first state government to provide easy financing along with interest subvention on the purchase of EVs
Sales of Lithium ion based E-Rickshaws and e-carts along with electric autos and Electric Light Goods vehicle in Delhi set to get a boost by this MOU
Delhi Government in collaboration with CESL to launch an online portal to apply for availing benefits under the Interest Subvention Scheme
This interest subvention scheme will help not just individual buyers but also the fleet owners deploying vehicles for ecommerce, Grocery or delivery industry- Kailash Gahlot
The online portal created by CESL will give various approved vehicle options for people to choose from and also help in ensuring that they receive the interest subvention on their loans via a smooth automated channel- Kailash Gahlot
Going Electric just became even more affordable- Kailash Gahlot
New Delhi:
Delhi Government today signed a Memorandum of Understanding (MOU) with Convergence Energy Services Limited (CESL) for providing 5% Interest Subvention on purchase of Electric Vehicles on loans for the purchase of selected categories of Electric Vehicles (EVs) in Delhi. The MOU was signed by Shri Vinod Kumar Yadav, Deputy Commissioner, Transport Department, Govt. of Delhi and Shri Polash Das representing CESL in presence of Transport Minister of Delhi Shri Kailash Gahlot, Dialogue and Development Commission Vice-Chairperson Shri Jasmine Shah, Principal Secretary cum Commissioner Transport Shri Ashish Kundra and Special Commissioner Shri S.B. Deepak Kumar.
With the signing of this MOU, the Delhi Government becomes the first state in the country to provide easy financing along with interest subvention on the purchase of EVs. The agreement will help in accelerating the adoption of lithium-ion-based e-rickshaws and e-carts along with electric autos and electric Light Goods Vehicles in the national capital. The 5% Interest Subvention on loans on the purchase of EVs is in addition to the applicable purchase incentive of Rs 30,000 and scrapping incentives of up to Rs 7,500 under the Delhi EV Policy. Through this scheme, an electric auto and electric light commercial vehicle will be able to avail upto Rs 25,000 additional benefit.
Delhi, since the launch of its ambitious EV policy in August 2020, has been continuously working in promoting and incentivizing the sales of Electric vehicles. For Oct 2021 – Dec 2021, electric vehicles contributed to over 8% of total vehicle sales in Delhi. With more than 31,000 electric vehicles sold since the announcement of the Delhi EV Policy, in August 2020, access to attractive financing solutions and options is still one of the major deterrents for achieving the critical mass. Currently, the rate of interest on EVs can vary from 25% to 30% for some vehicle segments which makes owning an Electric Vehicle a cost-intensive proposition. To overcome these barriers and make it more affordable for the buyers, the Transport Department has partnered with CESL which is a subsidiary of Energy Efficiency Services Limited (EESL) owned by Central Public Sector Units (CPSUs).
Under this partnership, CESL will empanel Financial Institutions (FIs) like Scheduled Banks, Non-Banking Financial Institutions (NBFCs), and Micro-Financing Institutions (MFIs) through an open and transparent process to provide loans to electric vehicles at attractive terms. Through this empanelment, the FIs will provide loans with a minimum 80% Loan-to-Value (LTV) at interest rates of a maximum of 20% (including the interest subvention) for a loan tenure which is in the best interest of the consumer. For reference, if the mandatory maximum interest rate is 20%, Financial Institutions (FIs) empanelled by CESL are expected to provide loans to the borrowers at interest rates not more than 15%. This scheme also looks forward to helping individual fleet owners or those in leading eCommerce, grocery or delivery organisations, to increase their fleet size using Interest subvention for the purchase of goods vehicles. The benefit of the Interest Rate Subvention Scheme can be availed by an EV purchaser for the specified categories of EVs under the Delhi EV Policy 2020.
To ensure a transparent and smooth process to pass on the benefits to the consumers, CESL in collaboration with Delhi Government will launch an online portal for consumers to avail options to choose from several empanelled models of lithium-ion battery-operated electric three-wheelers including E-Autos, E- rickshaws, E-carts and Goods carriers, registered as per the Delhi EV Policy 2020. Once Live, the online portal shall be made accessible to all users on the website of the Transport department of the Delhi Government.
Delhi, the EV capital of India, promises to bring more innovations like these for faster adoption of Electric vehicles in the city. The Transport Minister of Delhi Shri Kailash Gahlot in a statement said “We delivered what we had promised to our citizens. This interest subvention scheme will help not just individual buyers but also the fleet owners deploying vehicles for ecommerce, Grocery or delivery industry. The online portal created by CESL will give various approved vehicle options for people to choose from and also help in ensuring that they receive the interest subvention on their loans via a smooth automated channel. Going Electric just became even more affordable”