Emphasising that financial institutions should be encouraged to extend their lending facility to the electric mobility sector, the government think-tank Niti Aayog has made various suggestions such as the government should provide incentives on electric vehicle (EV) purchase over and above the existing subsidy under the Faster Adoption and Manufacturing of Hybrid and EV (FAME-II) scheme.
The Niti Aayog in its status quo analysis of electric mobility in India also said the government should include EVs and associated businesses in the priority sector lending category. The government think-tank further pitched for creation of non-financial incentives, including priority lanes and exclusive parking for EVs in commercial complexes.
As per Niti Aayog, green zones should be demarcated within cities that permit only EVs, and heavy taxes should be charged on conventional fuel vehicles. The Aayog also recommended providing interest subvention on loan taken for EV purchase.