Green mobility key to decarbonisation of transport sector: NITI Aayog CEO Parameswaran Iyer

Green mobility is going to play a major role in decarbonisation of India's transport sector, NITI Aayog CEO Parameswaran Iyer said on Wednesday.

Iyer, while addressing an event organised by the 'Shoonya Forum', noted that the role of financing is critical for scaling of electric mobility in India. He also stressed on the need of finding ways to reduce risks associated with financing of electric vehicles.

Pointing out that the rural India is urbanising rapidly, the NITI Aayog CEO said there is a need to push electric vehicles in smaller cities also.

According to a recent report prepared by NITI Aayog and Rocky Mountain Institute (RMI) India, banks and non-banking financial companies (NBFCs) have the potential to achieve electric vehicle financing market size of Rs 40,000 crore by 2025 and Rs 3.7 lakh crore by 2030.

The report had also stressed that lending by banks and NBFCs for buying EVs should be included in the Reserve Bank of India's (RBI) priority-sector lending (PSL) guidelines.

Priority sector lending aims to expand financial access and support employment opportunities in India.

To meet these goals, the report had suggested that the RBI might consider various EV segments and use cases based on five parameters -- socio-economic potential, livelihood generation potential, scalability, techno-economic viability, and stakeholder acceptability.