AP Govt To Provide Affordable Loans For Its Employees To Buy Electric Two-Wheelers

AMARAVATI: The Andhra Pradesh government has decided to provide affordable financing options to government employees working in the state to purchase electric scooters.

According to the Department of Energy, Non-Conventional Energy Development Corporation of Andhra Pradesh (NEDCAP) has come up with a plan for this in collaboration with Central government agencies such as National Thermal Power Corporation Limited (NTPC) and Energy Efficiency Services Limited (EESL).

The government has chalked out a plan wherein financial institutions will offer loans at cheaper interest rates to government staff, enabling them to buy electric two-wheelers. The state government has invited bids from the Original Equipment Manufacturer (OEMs) to offer electric two-wheelers under attractive equated monthly instalments.

The government is in talks with various companies to chalk out the loan plans, which can be repaid in 24 to 60 months, depending on the battery capacity of the vehicle making it an affordable financing option for the employees.

It is looking at a monthly repayment loan installment (EMI) of Rs 2,000 to Rs 2,500. It has stated that there are different brands available in the market that when once charged the vehicles can travel from 40 KMs to 100 KMs.

In the first phase, bids were sought from companies interested in supplying one lakh vehicles and more than 10 companies have already evinced interest, NEDCAP officials said.

To this end, a proposal has been sent to  Chief Minister YS Jagan Mohan Reddy from the Department of Energy. He is also known to have responded positively to this proposal.

The Department of Energy said it was developing an Electric Vehicle (EV) Park on about 1,000 acres to operate in a plug-and-play mode for the manufacture of electric vehicles and their ancillary products. It will also provide a 50 per cent subsidy on capital investment as well as other financial incentives to those setting up units in the state.

The unit price of electricity used for charging EV vehicles in the state has been fixed at Rs 6.70. It has already set up 80 charging stations in the state and is setting up 400 new charging stations in 73 areas across the State.

The Department of Energy said it was focusing on increasing the use of these cars in government departments and handed over 300 such cars to various departments so far. The AP State government proposes to phase out internal combustion engine (ICE) vehicles by 2024.

Also Read: Vaccination Drive For Remaining AP Frontline, Healthcare Workers From April 19