In June 2023, the Small Industries Development Bank of India (SIDBI) launched mission EVOLVE (Electric Vehicle Operations and Lending for Vibrant Ecosystem) in a tie-up with the Niti Aayog (National Institution for Transforming India), World Bank, Korea-World Bank partnership facility, and Korean Economic Development Cooperation Fund (EDCF) to finance MSMEs (Micro, Small and Medium Enterprises) in the electric vehicles (EV) space.
- The objective of mission EVOLVE is to provide affordable commercial financing for EV loans to MSMEs, including hosting telematics and reducing financing costs.
- Under the partnership, SIDBI would receive technical support from Niti Aayog whereas the financial assistance would be provided by the World Bank, the Korea-World Bank partnership facility and the Korean EDCF.
i.This mission supports SIDBI’s aim to boost India’s target for EV30@30 (or) 30% EV penetration by 2030.
ii.In April 2023 SIDBI launched ‘Mission 50K-EV4ECO‘ to provide better financing terms for electric vehicles (EV). This mission aimed to finance 50,000 EVs.
iii.Gerald Ollivier, Lead Transport Specialist for the World Bank in India, stated that Evolve is designed to support around 1.5 million EVs and build the ecosystem in the mobility segment.
Note – According to the Society of Manufacturers of Electric Vehicles (SMEV), EV sales in India surpassed the 1 million mark in FY23, with 11,52,021 units sold, up to 58% from 7,26,861 units sold in FY22. Two-wheelers had the highest share of 62%, with 7,26,976 units sold in FY23.
-GAME Received SIDBI’s Approval for NGAP Program
On June 9, 2023, Global Alliance for Mass Entrepreneurship (GAME) received in-principal approval from SIDBI for designing and structuring a sustainable and scalable NBFC (Non-Banking Finance Company) Growth Accelerator Program (NGAP).
i.The first phase of the program involves the design of a comprehensive, actionable, granular report with the programme structure, piloting strategy and implementation plan for NGAP by GAME.
ii.Under the pilot cohort, the programme will include criteria for the evaluation and selection of around 20 NBFCs that are small in size but focused on the MSE (Medium and Small Enterprise) segment.
iii.NGAP is expected to be rolled out with active engagement of SIDBI from August 2023.
iv.The NGAP would enable a larger set of NBFCs to get access to institutional funding at a reasonable rate, so the benefit can be passed on to the MSMEs.
v.The programme would support small NBFCs that cater to MSEs in Tier 3 and 4 cities or to the urban MSEs that serve as the lowest rung of suppliers in a long value chain.
Recent Related News:
On 30th September 2022, Small Industries Development Bank of India (SIDBI) and Dun & Bradstreet signed a Memorandum of Understanding (MoU) to create the SIDBI -D&B Sustainability Perception Index (SIDBI – D&B SPeX) during an event held in Coimbatore, Tamil Nadu (TN).
About Small Industries Development Bank of India (SIDBI):
Chairman & Managing Director – Sivasubramanian Ramann
Headquarters -Lucknow, Uttar Pradesh
Establishment -2nd April 1990