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India, World Bank Looking to Spur Lending for Electric Vehicles

  • Plan is for a financial instrument to cut risk, official says
  • $1 billion fund to be raised for helping with purchases of EVs

India’s government and the World Bank are in talks to introduce a risk-sharing mechanism to compensate banks giving loans for electric vehicle purchases, an official said, as the country seeks to decarbonize the transport sector. 

The risk instrument will help banks hedge against loan defaults and cut the cost of financing EVs, India’s G20 sherpa Amitabh Kant said at the sidelines of an industry event in New Delhi. Kant was CEO of government thinktank NITI Aayog until June this year, spearheading state policy decisions across the economy.