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Under the Ministry of New and Renewable Energy (MNRE), the Indian Renewable Development Agency (IREDA) has created a programme to facilitate the production and deployment of infrastructure for green mobility, charging infrastructure and other developing technologies.
Among the growing technologies are battery energy storage systems and battery manufacturing, as well as initiatives involving the generation of green hydrogen, fuel cells, manufacturing and assembly facilities for electric vehicles (EV) and their components, and waste recycling branches.
These technologies are supposed to get loans worth up to 70% of the cost of new technology from IREDA.
IREDA will also give financial help to EV fleet owners and operators, as well as charging infrastructure owners, as part of the initiative.
Owners and operators of EV fleets involve fleet owners of commercial cars and bikes operating as taxi services on a business-to-business and business-to-customer basis, as well as commercial buses or similar passenger electric vehicles owners with a concession agreement with the state or central government entities.
Electrical equipment for charging EVs, as well as land for setting up the charging station, are included in the category of charging infrastructure owners. Loans will be available for charging using green energy as well.
The agency would offer financing worth up to 80% of the project cost to EV fleet and charging infrastructure owners.
Speeding up sustainable energy transitions away from carbon-based fuel sources is critical to meeting climate mitigation commitments and energy security goals. Keeping this in mind, IREDA is already funding compressed biogas (CBG) and bioethanol production projects to address the need for sustainable mobility options. The new plan broadens its scope to encompass funding the whole green mobility value chain.
Brahmaputra Valley Fertilizer Corporation Limited and IREDA inked an agreement in December 2021 for IREDA to contribute its techno-financial expertise in developing renewable energy projects and raising funding. The organizations are public-sector enterprises overseen by the Ministries of Chemicals and Fertilizers and MNRE, respectively.
For enhanced involvement of green energy in the economy, beyond the limits of serving power sector requirements exclusively, which only accounts for 16.5% of the final energy consumption, there is a need for continuous focus and investment in new and developing technologies in the industry and transportation sectors. Thus, this initiative by IREDA plays a major role to meet this goal.