In an effort to reduce the use of more expensive fuels and to protect the environment, the Ministry of Industries and Production has devised the Electric Bike Scheme. Under this programme, the ministry has proposed subsidised and bank financing plans to promote the use of Two Wheelers (E-Bikes) in the country.
According to documents in my possession, the ministry has established a plan to produce at least 100,000 E-bikes in the first 18 months. The government has suggested a Rs 17.5 billion subsidy over three years to encourage the purchase of relatively more expensive bikes for road use.
According to the plan, the government would make a down payment of Rs 90000 on an E-Bike with an estimated price of Rs 170,000, while the buyer would contribute Rs 10,000, bringing the total down payment to Rs 100,000. The bank will levy an interest rate of Kibor+2 or 19 percent, which is approximately Rs 13300 for a commercial loan of Rs 70000.
In accordance with the planned strategy, a 24-month payment plan has also been established, under which the client will pay a total of Rs 4310 per month, comprising Rs 2917 in principal, Rs 1109 in interest, and Rs 284 in insurance payment (2pc).
Under the plan, the ministry anticipates the manufacture/sale of 15,000 e-bikes during the current fiscal year, followed by the production of 60,000 and 100,000 e-bikes in 2022-23 and 2024-25, respectively, for a total of 175,000 bikes produced in three years.
Through the subsidised programme, e-bikes would be provided to students with salaried parents, female students / employees (20% quota), transgender individuals (1% quota), government employees, private sector salaried / self-employed individuals with NTN & Bank Account, Government / Armed Forces pensioners, and Imam Masjid / Hafiz Quran / Muazzam, duly qualified from institute recognised by the Government of Pakistan (endorsed by M/o
For the success of the programme, the ministry has proposed three subsidy models for the scheme, including the Cash Purchase Model, under which the government will contribute Rs 100,000 via banks as processing agents and the consumer will pay Rs 70,000 from their own resources. Under the Govt Subsidy Leasing Model, the Rs 100,000 are shared by the government and the consumer, while the Rs 70,000 are provided by banks as a loan with a 50% government credit guarantee. Under Model 2 of Government Subsidy Leasing, 30% of the subsidy down payment will be covered by the government, together with 50% financing subsidy and 50% Credit Guarantee.
For the purpose of promoting locally made E-Bikes and auxiliary components (Lithium-ion, swappable batteries), the ministry has proposed making arrangements for charging at home or at the workplace utilising home/personal chargers, government offices, and universities. It has been proposed that PSO be tasked with installing EV chargers at specific locations in the target city and special metres for commercial charging stations, including solar tariff-based metering.
Scheme could be initiated in 2022-23 as a Pilot Project in Islamabad, Peshawar, Quetta, Lahore, and Karachi.