Question: With which of the following institution recently, NITI Ayog joined hand to push easier financing of electric vehicles (EV) in India?
a) IMF
b) FATF
c) World Bank
d) None of these
Answer: (c)
Related Facts:-
- NITI Aayog has recently joined together with the World Bank to facilitate a easier financing of electric vehicles (EV) in India.
- NITI Ayog is planning this kind of financing as the high-street banks are reluctant due to a small resale market, of these items.
- These banks are also unwilling due higher default probabilities and significant upfront costs of these vehicles.
- The two entities (NITI Ayog and WB) are setting up a $300-million ‘first loss risk sharing instrument’, with State Bank of India (SBI) as its programme manager.
- This facility would seek to garner around $1.5 billion in financing for EVs.
- The instrument would act as a hedging mechanism, for banks to access in case of defaults of loans on purchase of EVs.
- CEO of Niti Aayog Amitabh Kant said that, it has also been expected to bring down the cost of financing for EVs by 10-12%,.
- The risk sharing instrument of $300 million would be institutionalized with SBI in this regard.
- According to Mr. Kant funds for this purpose would be available for all financial institutions to access as a first-loss instrument.