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SIDBI launches mission EVOLVE for affordable commercial EV financing

A file photo of EVs on the Indian Roads.

With the intention of creating affordable commercial financing for electric vehicles and prioritizing the national goal of EV30@30, the Small Industries Development Bank of India (SIDBI) has launched Mission EVOLVE (Electric Vehicle Operations and Lending for Vibrant Ecosystem) in collaboration with NITI Aayog and financial assistance from the World Bank, Korea-World Bank Partnership Facility and Korean Economic Development Cooperation Fund (EDCF).

SIDBI conceptualized EVOLVE to address the challenge of high-interest rates and limited availability of financing for the EV sector. In addition to fostering a transition to electric vehicles through affordable financing, EVOLVE will include the hosting of telematics that will help reduce financing costs and provide data for other financial services.

In the official statement released by the bank, S Ramann, CMD, SIDBI emphasized on creating a database of EV ecosystems to understand and extend the life of the EVs and also expressed SIDBI's commitment to increase the finance flow towards creating green assets.

The data would be available for policymakers to assess the gaps and further strengthen the EV ecosystem. SIDBI will keep playing the developmental role in the niche and green activities with the support of multilateral and bilateral, Ramann added.

Under EVOLVE's first scheme that looks to finance 50,000 EVs ('50K-EV4ECO'), a stakeholder consultation was organized in New Delhi which was attended by a large number of key representatives from the EV ecosystem in India.

"To support India's commitment to EV30@30, the SIDBI Mission 50K-EV4ECO scheme is a step in the right direction. This shall enable access to affordable financing for electric vehicles. The sanction offered to beneficiaries under both the schemes of SIDBI is an appreciated effort and many more miles to go in this EV transitional journey," said  Sudhendu Sinha, Adviser (Infra & e-mobility), NITI Aayog.

Gerald Ollivier, Lead Transport Specialist, The World Bank shared his perspective towards the journey of EVOLVE program and the move from initial transformation to scaling up of the use of EVs in the country. 

"EVOLVE is being designed to support around 1.5 million EVs and build the ecosystem in the mobility segment. The EVOLVE approach will seek to leverage the carbon credit to be generated by the program and the same may be used to mobilize for the benefit of the beneficiaries," Ollivier added.

"The Korean Government will extend support for the EVOLVE program which will address key barriers to the adoption of EVs in India as well as knowledge sharing between both countries," stated Kim Kisang, Chief representative from Economic Development Cooperation Fund (EDCF).

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