New Delhi, Aug. 25 -- State-run banks and financial institutions have proposed changes to the priority sector lending (PSL) framework that would bring electric vehicles (EVs), charging and battery-swapping infrastructure, and climate-transition projects into a more clearly defined lending regime, according to two government officials and a document reviewed by Mint.

The proposals, discussed at the two-day public sector bank (PSB) confluence in New Delhi, include specific PSL-linked lending limits of up to Rs.2 lakh for electric two-wheelers and Rs.20 lakh for electric four-wheelers purchased for personal use. They also propose limits of Rs.25 crore for charging and battery-swapping infrastructure, and Rs.50 crore for commercial electric-...