Govt hosts Roadshow for Promotion of Lignite Gasification Projects (See 'Corp Brief') Team Agriculture at Kharif Conclave; farming will get a new direction: Chouhan (See 'Corp Brief') A&C - Order of arbitral tribunal accepting objection that it lacks jurisdiction over party sought to be impleaded as non-signatory veritable party is appealable u/s 37(2)(a) of Arbitration Act: HC (See 'Legal Desk') Vaishnaw holds meeting with industry on Revamp of AI Curriculum (See 'Corp Brief') Khadse calls for Mission-Mode People's Movement Against Drug Abuse (See 'Corp Brief') Cooperative Sugar Sector to be strengthened through Circular Economy Model (See 'Corp Brief') IBC - Term loans are repayable through continuing instalment schedules, limitation for Section 7 proceedings is not exhausted merely because some earliest instalments may have become time-barred: NCLT (See 'Legal Desk') First Indigenous Hydrogen Train all set to start (See 'Corp Brief') NI Act - If directors are vicariously liable u/s 141 of NI Act and are themselves undergoing insolvency or bankruptcy, they are not entitled to benefit of moratorium in respect of their personal criminal liability u/s 138 of NI Act: SC (See 'Legal Desk') Ministry of Coal to Organize Roadshow on Surface Coal & Lignite Gasification Projects (See 'Corp Brief') IBC - Appeal without certified copy of impugned order, and without application for exemption from filing certified copy, is wholly incompetent appeal that does not satisfy essential requirements under NCLAT Rules: SC (See 'Legal Desk') DFS organises Credit Outreach Programme at Udaipur, Tripura (See 'Corp Brief') Competition Law - Competition Act did not confer any power on CCI to keep approval u/s 31(1) in respect of Amazon-Future coupon investment, in abeyance or compel fresh Form II filing after approval: SC (See 'Legal Desk') Experts deliberate on Standardised Coding System for Ayurveda under WHO-ICHI Initiative (See 'Corp Brief') IPR - Confusion at initial stage is sufficient to attract infringement: HC (See 'Legal Desk') DFS reviews Performance of North-East RRBs (See 'Corp Brief') IISc-led Semiconductor Training Initiative records Massive Growth in Tribal Youth Participation (See 'Corp Brief') CCI approves JV between Mercuria Energy & Tata International (See 'Corp Brief') CCI approves merger of Indovida India with and into EPL Limited (See 'Corp Brief') Union Minister launches PM-AJAY Portal & AJAY Mobile App to digitize SC welfare schemes (See 'Corp Brief') A&C - SpiceJet is directed to deposit outstanding amount immediately while also applying costs: HC (See 'Legal Desk') Gadkari reviews Monsoon Preparedness for Safer Highways (See 'Corp Brief') Skymap Pharmaceuticals approved as Strategic Buyer for disinvestment of IMPCL (See 'Corp Brief') PM-WANI Ecosystem undergoes Comprehensive Transformation to enable Inclusive Digital Connectivity (See 'Corp Brief') Sales of Khadi and Village Industry Products surpasses Rs 1.87 Lakh Crore-mark (See 'Corp Brief') SARFAESI - Suit's substantive reliefs concern specific performance and enforcement of agreements, plaint cannot be rejected at threshold under Order VII Rule 11 CPC merely because SARFAESI measures are also in background: HC (See 'Legal Desk') Reddy directs Agencies to Fast-Track Pending Mining & Exploration Projects (See 'Corp Brief') Meghalaya Minister discusses STI Hubs for Tribal Communities in Northeast with MoS (See 'Corp Brief') Govt strengthening Preventive Healthcare through Yoga and Naturopathy: Jadhav (See 'Corp Brief') Gadkari reviews NH Projects in Rajasthan and HP (See 'Corp Brief') Secretary reviews Progress of Mineral Block Auctions and Operationalisation (See 'Corp Brief') FERA - Receipt by person in India of Indian currency through cheque drawn on NRE account, even if that account had been funded by foreign currency deposits, does not by itself constitute contravention of Sec 8(1): HC (See 'Legal Desk') Parcel and Logistics Services register 70% growth; 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NITI Aayog, Rocky Mountain release 'Banking on EVs in India' report

Published: Jan 21, 2022

By TIOLCorplaws News Service

NEW DELHI, JAN 21, 2022: NITI Aayog, Rocky Mountain Institute (RMI), and RMI India today released a report, titled 'Banking on Electric Vehicles in India', which outlines the importance of priority-sector recognition for retail lending in the electric mobility ecosystem. The report provides considerations and recommendations to inform the inclusion of EVs in the Reserve Bank of India's (RBI's) priority-sector lending (PSL) guidelines.

Banks and non-banking financial companies (NBFCs) in India have the potential to achieve an electric vehicle (EV) financing market size of Rs 40,000 crore (USD 5 billion) by 2025 and Rs 3.7 lakh crore (USD 50 billion) by 2030. However, retail finance for EVs has been slow to pick up.

"Financial institutions have an important role to play in accelerating the adoption of EVs in India and supporting the decarbonisation of road transport," said Amitabh Kant, CEO, NITI Aayog. "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."

Priority-sector lending aims to expand financial access and support employment opportunities in India. In order to meet these goals, the report highlights that the RBI may consider various EV segments and use cases based on five parameters: socio-economic potential, livelihood generation potential, scalability, techno-economic viability, and stakeholder acceptability.

"Buyers are unable to access low-interest rates and long loan tenures for EVs as banks are concerned about resale value and product quality. Priority-sector lending can encourage banks to fast-track India's transition to EVs and help achieve our 2070 climate goals," said Clay Stranger, Managing Director, RMI.

The report indicates that electric two-wheelers, three-wheelers, and commercial four-wheelers are early segments to prioritise under PSL. Moving forward, the engagement of other ministries and industry stakeholders will be important to ensuring the guidelines designed can effectively enhance EV investment in India.

To maximise the impact of the inclusion of EVs, the report also recommends a clear sub-target and penalty mechanism for priority sector lending to renewable energy and EVs. Furthermore, it suggests recognition of EVs as an infrastructure sub-sector by the Ministry of Finance and the incorporation of EVs as a separate reporting category under the RBI. Multiprong solutions such as these are needed not only for EV penetration and businesses, but also for the financial sector and India's 2070 net-zero target.

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