Government to launch Rs4 billion EV initiative

ISLAMABAD: The government is to announce a Rs4 billion program for the induction of 42,000 electric vehicles, comprising 40,000 two-wheeler and 2,000 three-wheelers, to be introduced through subsidized loans under the as-yet-unannounced EV policy, The Express Tribune has learnt. Women will get a 25pc quota and the remaining 75% will be opened for general customers. The proposed grant of Rs4 billion is likely to be a part of the budget.

Loans will be available at KIBOR plus 3%. This lending is to be subsidized to the consumers. The steering committee deliberated further on such proposals on Tuesday.
New Policy
Another new policy incorporates a setting up of electric vehicle charging infrastructure. Standards and regulations are to be developed by National Energy Efficiency and Conservation Authority (NEECA). NEPRA has proposed a preferential tariff, which DISCOs have supported. Charging stations in the first phase will be situated along major highways, including the Motorway and Grand Trunk (GT) Road. OMCs have been asked to utilize the CSR fund for this initiative.

Another aspect of the plan is that it proposes to set up battery-swapping stations for three-wheelers in key cities and persuade the government to procure more EVs with a sharp focus on two-wheelers.

The government could also bring in concessional credit for buyers and investment credits to encourage demand for the uptake of EVs. Moreover, the creation of a New Energy Vehicle Fund (NEVF), along with seed funding by the government, can be made. The levies on conventional vehicles could be considered by the government as it sets up a Green Fund for climate finance support.

The Punjab government has already initiated its own EV subsidy scheme and is in the process of reviewing its incentive regime to support local manufacturing as well as early adoption of EVs.
The committee aims to finalize its National Electric Vehicle policy in a month. The industries and production minister heads the committee, Rana Tanveer Hussain; he urged for the policy, which shall help enhance energy efficiency and switch to clean automotive technology.

The next committee meeting would be after the week. The prime minister directs the formulation of an integrated policy which favors local manufacturing and early adoption of Electric Vehicles. The committee would periodically brief the prime minister and the ministry would support the committee.

The key functions would include guiding the establishment of a comprehensive EV policy, orchestrating the roll out of charging stations, supervising the replacement of conventional vehicles by the federal government with EVs, and recommending a tariff structure for charging stations to promote local manufacturing.

In addition, the committee will harmonize its policy with state climate initiatives towards reducing carbon emissions and increasing clean energy in transport. Public awareness campaigns focusing on environmental benefits and long-term savings when deploying EVs will be carried out together with a financial structure for demand incentivization through federal budget grants.