Purchase of EVs: govt. signs MoU with CESL

The Delhi government on Wednesday signed a Memorandum of Understanding (MoU) with Convergence Energy Services Limited (CESL) for providing 5% interest subvention on purchase of electric vehicles on loan in the city.

The MoU was signed by Vinod Kumar Yadav, Deputy Commissioner of Transport Department, and Polash Das, representing CESL, in the presence of Transport Minister Kailash Gahlot, Dialogue and Development Commission Vice-Chairperson Jasmine Shah, Principal Secretary-cum-Commissioner, Transport Ashish Kundra and Special Commissioner S.B. Deepak Kumar.

The Delhi government said with the signing of the MoU, it had become the first State in the country to provide easy financing along with interest subvention on purchase of EVs.

The agreement, the government stated, 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 Capital.

Additional benefit

The 5% interest subvention on loans on the purchase of EVs is in addition to the applicable purchase incentive of ₹30,000 and scrapping incentives of up to ₹7,500 under the Delhi Electric Vehicle Policy. Through this scheme, an electric auto and electric light commercial vehicle will be able to avail up to ₹25,000 additional benefit.

For the October to December 2021 quarter, electric vehicles contributed to over 8% of total vehicle sales in Delhi, according to government records.

Under this partnership, the CESL will empanel financial institutions to provide loans to electric vehicles at attractive terms. Through this empanelment, the institutions 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, the government stated.

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Printable version | May 28, 2022 10:36:23 am |