Delhi (The Stellar News): Comment from Mr. Shalya Gupta, CEO, Credifin Limited on expectations from the budget. Credifin Limited is focused on serving the underserved rural and semi-urban communities across 11 states and UTs. Majority of its revenue comes in from EV loans.
It is imperative that Government puts in place an enabling ecosystem for EV adoption. This includes green finance initiatives and incentivising EV purchase.
Green Finance Initiatives
Climate change is a pressing concern, and the finance sector has a role to play. We look forward to:
- Green Bond Market Expansion: Policies to promote the issuance and adoption of green bonds for funding EV infrastructure and sustainable projects.
- Carbon Credit Trading Framework: Introduction of frameworks that reward companies investing in eco-friendly initiatives.
Incentivising EV purchase and cost of ownership:
The EV market in India is poised for exponential growth, but the initial cost of EVs remains a barrier for many consumers. To address this, we expect:
- Enhanced Subsidies: Expansion of the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme to provide higher subsidies for both commercial and personal EVs.
- Tax Benefits: Additional tax rebates for customers availing EV loans to make ownership more affordable.
- Charging Infrastructure Investments: Increased allocation for developing EV charging infrastructure, especially in Tier-2 and Tier-3 cities, to boost consumer confidence in EV adoption.
- GST on Batteries: Reduction in GST rates for batteries used in Electric Vehicles to make EV ownership more economical and encourage their adoption.
- Fast Charging Infrastructure: Increased investment in fast-charging stations across urban and rural areas to support the rapid adoption of EVs and alleviate range anxiety among users.
- Affordable charging facilities: Offering incentives to lower the cost of charging infrastructure
