Centre Explores Financing Models to Boost Adoption of Electric Buses, Trucks

New Delhi, Apr 29 (TNT): The Ministry of Heavy Industries on Wednesday held a high-level meeting chaired by Secretary Kamran Rizvi to deliberate on financing mechanisms aimed at accelerating the adoption of electric buses (e-buses) and electric trucks (e-trucks) in the private sector.

The meeting focused on identifying key financing challenges, assessing the current funding landscape, and exploring solutions along with required government support to scale up electric mobility in the commercial vehicle segment.

Officials discussed several critical interventions, including the introduction of partial credit guarantee schemes to reduce risks for lenders and interest subvention mechanisms to lower borrowing costs for private buyers.

These measures are aimed at improving access to finance and encouraging greater private sector participation in EV adoption.

The ministry noted that buses form the backbone of public transport, while trucks play a crucial role in freight movement.

However, the commercial vehicle segment is also a major contributor to emissions, fuel consumption and air pollution. Electrification of these segments is therefore key to achieving India’s decarbonisation goals and its net-zero target by 2070.

The meeting saw participation from stakeholders across the financial and industrial ecosystem, including the Department of Financial Services, the World Bank (India), public and private sector banks, NBFCs, and apex institutions such as SIDBI and National Investment and Infrastructure Fund.

Industry bodies including the Society of Indian Automobile Manufacturers, All India Motor Transport Congress and Bus Operators Confederation of India, along with bus and truck operators and OEMs, also participated in the discussions.

The initiative underscores the government’s push to develop actionable financing solutions to address barriers in EV adoption, supporting broader goals of energy security, emission reduction, and domestic manufacturing under the vision of Aatmanirbhar Bharat and Viksit Bharat 2047.

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