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Pune AFC: Credit default fund should be set up for easy EV financing, says Sanjiv Bajaj
Earlier in the event,Chief Minister Uddhav Thackeray assured that the Maharashtra government is removing all the barriers and offering a smooth ride for investors
The government should consider setting up a ‘credit default fund’ to enable banks and financial services companies to offer easy financing for electric and alternative fuel vehicles, said Bajaj Finserv chairman and managing director Sanjiv Bajaj. He also added that the parameters in retail lending have returned to pre-pandemic levels.
Bajaj was speaking in the fireside chat session moderated by Maratha Chamber of Commerce Industries and Agriculture (MCCIA) director-general Prashant Girbane at the two-day conference organised in the city as a part of the Pune Alternate Fuel Conclave (Pune AFC), on Monday.
Earlier in the event, the conference was virtually inaugurated by Chief Minister Uddhav Thackeray. Thackeray assured that the Maharashtra government is removing all the barriers and offering a smooth ride for investors.
Bajaj said, “The transition from IC engine vehicles to electric vehicles (EVs) will happen at its own pace. To accelerate this pace, government and financial service companies need to take initiative. Some uncertainties in terms of the unknown resale value of the EVs and battery life need to be addressed. Financial service companies also need to understand various aspects of the EV ecosystem.”
Environment minister Aaditya Thackeray said, “Entire Maharashtra will soon have buses operated on hydrogen, biofuel or electricity. We will have ten thousand e-buses in Mumbai by 2027. The government is also considering some schemes to replace old rickshaws with e-autos.”
Aditya also announced the government’s plan to organise several conclaves on the lines of Pune AFC. He said an Urban Planning Conclave in Pune or Mumbai, Climate Resilience Farming Conclave in Kolhapur, Green Finance Conclave in Mumbai and Green Energy Conclave in Nagpur will be organised soon.
Energy Minister Nitin Raut said, “We are shifting focus on generating electricity based on hydrogen. The Maharashtra State Electricity Distribution Company Limited) MSEDCL is also monetising its assets and establishing EV charging points across the state. We are also entering into joint ventures with oil companies and if the model succeeds then we will have charging points in all schools and colleges. We are providing electricity for charging points at ₹5.5 per unit during daytime and ₹4.5 per unit during night hours. MSEDCL has also launched an app called Powerup EV.”
Ashish Kumar Singh said, “Mobility is undergoing a major transformation. Technology and consumer adoption are changing fast and are in a state of flux. We are also coming out with guidelines for fleet aggregators.”
MCCIA president Sudhir Mehta said, “Transportation is transforming in India with 60 to 70 per cent buses becoming electric or hydrogen fuel-based. Pune as a city has a confluence of software and hardware industry along with research organisations and talent. This will help Pune to drive the e-mobility initiative. India is looking for a new sunrise industry after IT, and EV has the potential to become such an industry.”
In his virtual address, NITI Aayog vice-chairman Rajiv Kumar said, “The battery swapping policy is in the final stages and this will be a tipping point for EV adoption. Cities like Pune have a cluster of industry, academia, research organisations and talent. These stakeholders should join hands to boost research and development in the EV sector.”
