Mission 50K-EV4ECO

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Overview:

Small Industries Development Bank of India (SIDBI) recently announced a new scheme Mission 50K-EV4ECO to boost the electric vehicle (EV) ecosystem in the country.

About Mission 50K-EV4ECO: 

  • Under this mission, SIDBI will directly provide loans to eligible small and medium enterprises (SMEs) for the purchase of EVs and developing charging infrastructure, including battery swapping.
  • It focuses on increasing the uptake of electric two-wheelers, three-wheelers and four-wheelers through direct and indirect lending support to vehicle aggregators, fleet operators and leasing companies.

Key facts about SIDBI

  • It was established under an Act of Parliament in 1990.
  • It is the Principal Financial Institution engaged in the promotion, financing & development of the Micro, Small and Medium Enterprises (MSMEs) sector and coordination of the functions of the various institutions engaged in similar activities.

What are Electric Vehicles?

  • It is defined as a vehicle that can be powered by an electric motor that draws electricity from a battery and is capable of being charged from an external source.
  • Government of India’s initiatives related to the Electric Vehicles
    • Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) – I and II:
    • It is currently India’s flagship scheme for promoting electric mobility.
    • It was launched in 2015.
    • Currently in its 2nd phase of implementation, FAME-II is being implemented for a period of 3 years,  from 1st April 2019 with a budget allocation of 10,000 Cr

 


Q1) What is an industry?

Industry refers to a broad range of economic activities related to the production and sale of goods and services. It includes activities such as manufacturing, construction, agriculture, mining, energy production, and transportation.

Source: How incentives for small & medium battery component suppliers can bolster EV adoption