After the failure of the electric bike scheme, the government made major changes in policy

The Prime Minister’s subsidized electric bike scheme has been badly lagging behind due to the apathy of commercial banks. Out of 44,689 applications sent to banks, only 22% were processed and the approval rate was a very low 9%, or 4,075 applications. So far, only 5,409 electric bikes and rickshaws have been distributed, which is just 4.5% of the annual target of 116,000. After this failure, the government has approved major changes in the program.

Under the new policy, the role of banks will be reduced and the self-finance scheme will be promoted, which is giving better results than before. In this scheme, almost all the applicants were provided with bikes and the majority also got subsidy. Under the new facility, users will be able to pay after deducting the subsidy from the price of the bike, meaning there will be no need to pay the full amount in advance.

A special scheme has also been introduced for government employees, under which employees of grade 16 and below will be able to get electric bikes by paying only Rs 10,000 in advance and the government will pay the remaining amount in installments. In addition, 600 electric bikes will be distributed among students who have secured prominent positions in educational boards across the country.

According to officials, there is a plan to introduce one lakh electric bikes in three months under the new scheme, which will enable fuel savings and reduction in foreign exchange. Rs 9 billion has been allocated for this program in the current fiscal year.