Delhi Govt With CESL To Provide 5% Interest Subvention On Loan For EVs

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The Delhi government signs an agreement with CESL to give a 5% interest subvention on loan for buying electric rickshaws, carts, light goods vehicles, and autos.

The agreement was signed by Polash Das, representative of Convergence Energy Services Limited (CESL), Deputy Commissioner of the Delhi Transport Department, Vinod Kumar Yadav and other representatives.

Kailash Gahlot, Delhi Transport Minister who was present on the occasion said that this interest subvention will assist fleet owners as well as individuals in deploying vehicles for deliveries.

This scheme is in addition to the scrapping provocation of around Rs 7500 and buying incentives of Rs 30,000 given under the Delhi electric vehicle Policy. An electric LCV or auto can avail around Rs 25,000 additional benefit.

Since the EV Policy was announced in 2020, 31,000 electric vehicles have been sold. As of now, owning an electric vehicle is a costly affair where the interest rate is between 25-30% for some vehicles.

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CESL and the Delhi government will also launch an online portal for the purchasers to decide between various models of electric three-wheelers. CESL will empanel micro-financing institutions, non-banking financial institutions, and scheduled banks to provide loans for electric vehicles at an attractive rate.

“The empanelled financial institutions will provide loans with a minimum 80 per cent loan-to-value at interest rates of a maximum of 20 per cent (including the interest subvention) for a loan tenure which is in the best interest of the buyer of electric vehicles,” the statement said.

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