SIDBI has established partnerships with Niti Aayog, the World Bank, the Korea-World Bank Partnership Facility, and the Korean Economic Development Cooperation Fund to facilitate the financing of electric vehicles (EVs) for small and medium-sized industrial units.
The financing will be implemented through a new initiative called “Evolve,” which aims to create a dynamic ecosystem for EV operations and lending. Through this project, SIDBI will provide accessible and affordable commercial financing options for EVs, as announced in a statement by the national bank.
While Niti Aayog will offer technical support to SIDBI, financial assistance will be provided by the World Bank, the Korea-World Bank Partnership Facility, and the Korean Economic Development Cooperation Fund, according to SIDBI.
SIDBI has already launched two financing schemes, including direct lending to micro, small, and medium enterprises (MSMEs), as well as a separate scheme for lending to a specific category (referred to as “N”), aiming to facilitate lower-cost financing options.
The newly introduced scheme, according to S Ramann, Chairman and Managing Director of SIDBI, aims to finance 50,000 EVs.
Kim Kisang, the Chief Representative from the Korean Economic Development Cooperation Fund, expressed his government’s commitment to supporting the SIDBI program, addressing barriers to EV adoption, and fostering knowledge exchange between the two countries.
Gerald Ollivier from the World Bank highlighted that the Evolve initiative is designed to support approximately 1.5 million EVs and contribute to the development of a comprehensive mobility ecosystem.
