Fleet Financing

Delhi government signs Memorandum of Understanding with CESL; offer a 5% interest subsidy on loans for the purchase of EVs

The Delhi government on Wednesday signed a Memorandum of Understanding (MoU) with Convergence Energy Services Limited (CESL) to provide a 5% interest subsidy on the purchase of electric vehicles on loans for the purchase of certain categories of electric vehicles (EV) in Delhi.

The MoU was signed by Vinod Kumar Yadav, Deputy Commissioner, Department of Transport, Government of Delhi and Polash Das representing CESL in the presence of Transport Minister Kailash Gahlot.

Under this partnership, CESL will bring together financial institutions such as scheduled banks, non-banking financial institutions and micro-finance institutions.

Through this constitution, FIs will provide loans with a loan-to-value ratio of at least 80% at interest rates of up to 20%, including the interest subsidy for a term of the loan.

While the maximum mandatory interest rate is 20%, financial institutions incorporated by CESL are required to provide loans to borrowers at interest rates not exceeding 15%.

This program is also intended to help individual fleet owners, or those in major e-commerce, grocery, or delivery organizations, increase the size of their fleet by using an interest subsidy for the purchase of commercial vehicles.

Benefiting from the interest rate subsidy, the scheme can be availed by an EV buyer for the specified categories of EVs under the Delhi EV Policy 2020.

Apart from this, the transportation department has also signed a separate memorandum of understanding with CESL for the installation of charging stations and battery swapping stations at finalized bus depots.

Pursuant to the review of the Memorandum of Understanding, CESL has agreed to procure, install, operate and maintain charging units and related infrastructure at the group’s bus depot location in his costs and expenses.

The site usage fee will be paid by CESL to Delhi Transport Corporation (DTC) monthly at the rate of Rs 1.00 per kWh of energy distributed.

If the space required by the dealer is more than 3 ECS (Equivalent Car Space), additional Rs 2000 will be charged by ECS per month. Initially, the duration of the contract is 10 years.

According to the signed MoU, CESL will start work immediately and complete the installation of all stations within the next 4 months.

The location assessment survey at various DTC cluster bus depots at Rani Khera-I, Rani Khera-II, Rani Khera-III, Rajghat, Dilshad Garden, Seema Puri, Bawana Sec-1, Bawana Sec- 5, Kanjhawala, Kair, Dichaon Kalan, Dwarka Sec-22, Rewla Khanpur and Chhatarpur have been jointly identified by the Ministry of Transport and EESL for the establishment of public electric vehicle charging stations and battery swapping stations .

Each of the 14 slots will have a total of 6 charge points each, including 3 for 2 and 3 wheels and 3 points for 4 wheels.

In a statement, Transport Minister Kailash Gehlot said: “This agreement will help accelerate the adoption of lithium-ion electric rickshaws and carts, as well as electric cars and electric light-duty vehicles in the national capital. The loan interest subsidy for the purchase of electric vehicles is in addition to the applicable purchase incentive of Rs 30,000 and scrapping incentives of up to Rs 7,500 under Delhi EV policy. Thanks to this program, an electric vehicle and an electric light commercial vehicle will be able to benefit from up to Rs 25,000 in additional advantages.”

”Delhi, since the launch of the EV policy in August 2020, we have been continuously working to promote and incentivize sales of electric vehicles. From October 2021 to December 2021, electric vehicles contributed over 8% of total vehicle sales in Delhi. Over 31,000 electric vehicles sold since the announcement of the Delhi EV Policy in August 2020,” he added.

Gehlot also said, “To ensure a transparent and smooth process to pass on the benefits to consumers, CESL, in collaboration with the Government of Delhi, will launch an online portal for consumers to choose from several lithium-ion battery models. electric three-wheelers, including E-Autos, E-rickshaws, E-carts and cargo transporters, registered under the Delhi EV Policy 2020.”

(With ANI entries)

Posted: Thursday, January 20, 2022, 9:39 AM IST