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Context: The Small Industries Development Bank of India (SIDBI) recently announced “Mission 50K-EV4ECO” to strengthen the country's electric vehicle (EV) ecosystem.

Mission 50K-EV4ECO

About

• The Small Industries Development Bank of India (SIDBI) recently announced “Mission 50K-EV4ECO” to strengthen the country's electric vehicle (EV) ecosystem.
• This initiative aims to support 50,000 EV entrepreneurs and enterprises in the next three years through various interventions such as financing, mentoring, capacity building and market linkages.
• As part of Mission 50K-EV4ECO, SIDBI will directly offer loans to qualified small and medium-sized businesses for the acquisition of EVs and the development of charging infrastructure, including battery swapping.
• Mission 50K-EV4ECO goal is to electrify 50,000 vehicles by 2025.

Objectives

• The objective is to strengthen the nation's electric vehicle (EV) ecosystem.
• The scheme's pilot phase is focused on encouraging the use of electric two/three/four-wheelers by providing direct and indirect lending support to vehicle aggregators, fleet operators, and leasing businesses.
• The mission will focus on four key areas:
  • Awareness and advocacy
  • Access to finance
  • Access to technology
  • Access to markets
• It will also support various segments of the EV value chain such as manufacturing, charging infrastructure, battery recycling, mobility services and skill development.

Steps taken

• SIDBI has partnered with several stakeholders such as industry associations, incubators, accelerators, research institutions and government agencies to implement the mission. Some of the key partners are;
  • Confederation of Indian Industry (CII)
  • Automotive Component Manufacturers Association of India (ACMA)
  • Society of Indian Automobile Manufacturers (SIAM)
  • Electric Vehicle Association of India (EVAI)
  • Atal Innovation Mission (AIM)
  • Startup India
  • Invest India

Conclusion

• The mission is expected to have a significant impact on the growth and development of the EV sector in India. It will also help in creating employment opportunities, enhancing competitiveness, promoting innovation and fostering a green economy.

Keywords

Small Industries Development Bank of India (SIDBI)

• It is a financial institution that provides loans and other assistance to micro, small and medium enterprises (MSMEs) in India.
• It was established in 1990 under an act of Parliament and is headquartered in Lucknow, Uttar Pradesh.
• It is the principal financial institution for the promotion, financing and development of MSMEs in India.

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PRACTICE QUESTION Q. Electric vehicles (EVs) are becoming more popular and affordable as an alternative to conventional cars that run on fossil fuels. However, there are still some challenges and uncertainties that EV drivers and potential buyers may face. Discuss

https://www.downtoearth.org.in/news/governance/how-supply-side-incentives-for-small-medium-battery-component-suppliers-can-bolster-ev-adoption-88815