Ministry of Heavy Industries Holds Meeting on Financing Electric Buses, Trucks

Key proposals discussed included partial credit guarantee schemes to reduce lending risks for financial institutions and interest subvention mechanisms to lower borrowing costs for private operators. These measures are aimed at addressing financing barriers in the electric mobility segment. Stakeholders highlighted the importance of electrifying commercial vehicles, noting that buses form the backbone of public transport, while trucks play a critical role in freight movement. The segment also contributes significantly to emissions and fuel consumption, making electrification essential for achieving decarbonisation goals and the country’s net-zero target by 2070. The meeting saw participation from government departments, financial institutions, industry bodies, and multilateral organisations, including the World Bank. Representatives from banks, NBFCs, OEMs, and transport operators also took part in the discussions. Industry bodies such as the Society of Indian Automobile Manufacturers (SIAM), All India Motor Transport Congress (AIMTC), and Bus Operators Confederation of India (BOCI) were also present. The initiative is part of ongoing efforts to develop financing solutions to support the transition to electric mobility in the commercial vehicle segment, while advancing broader goals of energy security, emission reduction, and domestic manufacturing. (KNN Bureau)