The Centre and the World Bank are in talks to introduce a risk-sharing mechanism to compensate banks giving loans for electric vehicle purchases, an official said, as the country seeks to decarbonize the transport sector.
The risk instrument will help banks hedge against loan defaults and cut the cost of financing EVs, India’s G20 sherpa Amitabh Kant said at the sidelines of an industry event in New Delhi. Kant was CEO of government thinktank NITI Aayog until June this year, spearheading state policy decisions across the economy.
The switch to clean transport in the South Asian nation is slower than the US and China in part due to the sluggish adoption of battery-powered vehicles.
