The electric vehicle segment is in the limelight and it is no secret that while the industry may be considered in its nascency has the potential to big a massive success. This means that it will also see interest from financing companies and venture capitalists to accelerate growth. On February 1, Finance Minister Nirmala Sitharaman presented the Interim Budget 2024, which was closely watched by everyone including stakeholders in the EV ecosystem. Here is what they think.
Anirudh A Damani, Director, Artha India Ventures: “In this year’s interim budget, the Finance Minister has adeptly spotlighted the government’s dedication to pivotal sectors poised to elevate GDP growth, with a particular focus on empowering youth, women, and micro-entrepreneurs. This commitment is further enriched by an ambitious agenda to enhance digital infrastructure, aiming to foster entrepreneurship nationwide and boost employment opportunities. Notably, the budget’s provisions for EV and deep tech sectors signal a continued allure for venture capital in startups, reinforcing investor confidence. The introduction of a Rs 1 lakh crore corpus for long-term, interest-free loans emerges as a landmark initiative, promising to invigorate entrepreneurship in tier 2 and 3 towns. Our experience over the past decade affirms the high potential of these regions as the cradle for India’s next 100 unicorns, where access to early-stage capital has remained elusive. The government’s move to provide interest-free loans is a game-changer, not only facilitating capital accessibility but also encouraging deeper penetration by institutional investors in search of disruptive startups. This strategic intervention is poised to reshape India’s entrepreneurial landscape, heralding an era of widespread innovation and growth”.
Akash Gupta, Co-Founder & CEO, Zypp Electric: “We applaud the government’s commitment in the budget to nurturing the EV ecosystem. The allocation of resources towards the development of a robust infrastructure signifies a pivotal moment for our nation. This budget not only encourages entrepreneurship but also opens doors for a multitude of vendors, providing ample opportunities for supply and installation services. The emphasis on supporting manufacturing and charging infrastructure not only aligns with our company’s mission but also ensures a sustainable future for the entire EV industry. Additionally, the focus on creating employment opportunities for the youth, particularly those with technical skills in manufacturing, installation, and maintenance, will catalyse innovation and growth. We look forward to collaborating with the government in realizing this shared vision and contributing to the electrifying transformation of our nation’s mobility landscape.”
Anjali Bansal, Founding Partner, Avaana Capital: “In India’s pivotal shift towards enhancing EV adoption, significant strides have been made through PLI schemes and substantial R&D investments in electric mobility. There is a parallel focus on supporting the charging infrastructure, recognising that its accelerated development is important in realising this transition. The emphasis lies in establishing interoperable, shared infrastructure adaptable across OEMs and diverse vehicle configurations and hardware. Government can continue to support a green fund facility to support innovation and indigenous technology solutions for climate action, particularly in adaptation and resilience building.”
Ankit Kedia, Founder & Lead Investor, Capital A: “The finance minister’s efforts in formulating an Interim Budget that prioritises sustainability and clean mobility are indeed noteworthy. The provision of viability gap funding for shore-wind energy is strategically poised to attract startups and investors to this sector. Moreover, the phased mandatory blending of compressed biogas in transportation fuels and domestic piped natural gas signifies a significant stride forward. The introduction of bio-manufacturing in the electric vehicle sector promises to markedly reduce manufacturing emissions, thereby enhancing the eco-friendliness of EVs.”
Ankur Bansal, Co-Founder & Director, BlackSoil Capital: “The FM’s announcement on supporting EV manufacturing and charging infrastructure is a welcome and much-needed move. With a focus on e-vehicle adoption, particularly e-buses for public transport, this proposed initiative will be crucial in achieving the government’s net-zero emissions target by 2070, paving the way for a sustainable and greener future. This will also give a boost to the EV startups, encouraging further innovation. Additionally, introducing payment security mechanisms in public transport networks will encourage greater adoption of e-buses. This strategic initiative will drive economic growth and help us popularise sustainable transportation in the country.”
Mayuresh Raut, Co-founder & Managing Partner, Seafund: “The solar rooftop schemes will be a big boost to not only meet our goals for clean energy, but will also set up India to start addressing the EV charging infrastructure that is currently holding back wider adoption of EVs. It will also create enormous jobs for installation, manufacturing and maintenance of solar infrastructure and a secondary effect will be opportunities available for startups to build on this. Extension of tax benefits for sovereign wealth funds expiring on March 31, 2024 to March 31, 2025 is a good signal from the government to indicate that there will be continuation of beneficial policies and friendly institutional investor policies.”
Nehal Gupta, Managing Director, Accelerated Money for U (AMU): “The Union Budget has undoubtedly given a substantial boost to the EV, with favourable measures to support manufacturing and charging infrastructure, with a focus on encouraging the adoption of e-buses. As someone who is closely connected to the EV landscape, I think these developments are commendable and will definitely power the EV sector’s growth for the years to come. However, I wish there were more provisions with regard to GST rates and women borrowers. While this focus on driving e-mobility and phasing out conventional fuels would help achieve sustainability and pave the way for greater EV adoption, more emphasis on the EV financing industry could have benefitted the EV drive. It is not unknown that EV financing companies and NBFCs play a vital role in driving the green transition and will continue to play a crucial role in the coming years to help the government ensure 30% EV penetration by 2030. I believe that more proactive measures in favour of EV financiers could have benefitted the enabler of change, adding momentum to the green revolution.”
Rahul Goenka, Founder, ElectroRide: “The commitment to expand and fortify the e-vehicle ecosystem, especially by bolstering manufacturing and charging infrastructure, aligns seamlessly with our vision. We appreciate the emphasis on encouraging greater adoption of e-buses for public transport networks through payment security mechanisms. This decisive step will undoubtedly contribute to a sustainable and eco-friendly future.”
Sameer Aggarwal, CEO & Founder, Revfin: “The vote-on-account and interim budget presented by the Finance Minister, signals towards a transformative era for the nation. The commitment to fortify the EV ecosystem and support manufacturing and charging infrastructure aligns with global environmental goals, positioning India as a leader in widespread sustainable mobility adoption. Continued focus on the rural economy support, youth skill development, and gender-inclusive initiatives reflects a holistic approach toward inclusive and sustainable growth. Skill India Mission’s success in training 1.4 crore youth strengthens the workforce for evolving job demands.”
