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India considering EVs for priority sector lending, official says
Sommario：NEW DELHI, Aug 26 (Reuters) - Indias finance ministry is considering a proposal to include electric
NEW DELHI, Aug 26 (Reuters) - Indias finance ministry is considering a proposal to include electric vehicles under the Reserve Bank of Indias (RBI) priority sector guidelines, a move that would make it cheaper to raise funds, a government official said on Saturday.
The proposal was made to the finance ministry by the power ministry.
\“We will discuss with the RBI, and a detailed examination will be done,\” the official said, requesting anonymity because the discussions are ongoing.
Allowing financing of electric vehicles under priority sector lending would reduce the cost of finance and could lead to their wider adoption.
Priority sector lending guidelines require banks to allocate 40% of their loan book for these sectors.
In January 2022, Indias policy thinktank, Niti Aayog, co-authored a report that pitched this idea.
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