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Subsidy upto Rs. 50 lakhs for buying an Electric vehicles in India, Central Govt Policy 2018!

Subsidy upto Rs. 50 lakhs for buying an Electric vehicles in India, Central Govt Policy 2018!

Showcased at Smart cities expo 2018 .

As part of a Rs 9,400-crore package for hybrid vehicles and Electric Vehicles in India, the government may offer incentives of up to Rs 2.5 lakh to those scrapping old petrol- or diesel-fired vehicles along with sops for investment to manufacture parts such as motors in the country.

What this subsidy means is that electric car buyers will get a rebate of up to Rs. 2 lakh from the government, which wants more people to buy electric cars rather than the ones running on petrol or diesel. The Indian government also plans to support electric two-wheelers by offering a rebate of up to Rs. 30,000, on purchase, to buyers. However, these rebates do come with terms and conditions.

The government plans to give 50,000 electric car owners, the Rs. 2 lakh rebate but cars bought under this scheme cannot have a price of more than Rs. 15 lakh. Similarly, the Rs. 30,000 rebate for high-speed electric two-wheelers is for 1.5 lakh owners, but the two wheelers need to be priced below Rs. 1.5 lakh, to be eligible for this scheme. For low-speed, electric two-wheelers, the government will offer a Rs. 20,000 rebate, but here again, the maximum price of the two-wheeler has been capped to the sub-Rs1 lakh mark.

The same sops will be available to individuals buying electric cars provided theyscrap their pre-BS III vehicles + and get a certificate from the approved scrapping centre, sources told TOI.

While the sops for passenger vehicles and two-wheelers are expected to cost around Rs 1,500 crore over the next five years, around Rs 1,000 crore spending is planned to set up charging stations across the country.

According to the proposal circulated by the department of heavy industries (DHI), at least one charging point is planned every 9 sq km in all metros, million-plus cities and identified smart cities while a charging station on both sides of the highway is planned every 25 km along the Delhi-Jaipur, Delhi-Chandigarh, Chennai-Bengaluru and Mumbai-Pune stretches.

Check out a tour of Tata Tigor Electric Vehicle in India from our Visit to 4th Smart Cities Expo 

One of the major focus areas of phase-II of Faster Adoption and Manufacturing of (Hybrid & Electric) Vehicles (FAME) will be on public and intermediary transport, which include taxis and three-wheelers. The plan awaiting the government approval is expected to come as a major setback to the automobile industry, which wanted sops for all types of electric vehicles in India. The industry is working out its strategy based on the assumption that the government will offer incentives to make electric vehicles more attractive.

The demand incentive will cover a little over five lakh electric vehicles and over 80% of these will be twoand three-wheelers. The government plans to spend about Rs 5,800 crore to push demand for electric vehicles to “reduce the cost” of such vehicles to make them affordable.

A section in the government, however, is of the view that the entire incentive scheme, covering around five lakh vehicles, is only 0.5% of the country’s current annual vehicle production. “If the target is to reduce emission of greenhouse gases, should we not focus on improving public transport by deploying more buses running on cleaner fuel?” asked an official.
For the same amount (Rs 5,800 crore), at least 50 lakh buses can be run across the country, on the lines of orange buses in Delhi, on ‘operation-expenditure model’, sources said.
This scheme will also be offered to three-wheelers, buses, trucks and light commercial vehicles. All in all, the Indian government hopes that such discount schemes/rebates on electric vehicles will entice buyers to opt for these vehicles. Moreover, the government is in the process of reducing GST on batteries for electric vehicles, which is likely to make electric vehicles in India cheaper than before. Such rebates are also likely to encourage car and two-wheeler makers to come up with more attractively priced electric vehicles.

For now, the electric car space in India has just two offerings, both from Mahindra Electric. The E2O 4-door is one such offering while the other is the eVerito. Tata Motors is likely to introduce the electric variants of the Tiago and Tigor soon. Next year, Hyundai plans to bring in the Kona Electric SUV. Mahindra’s future plans include the electric variants of the KUV100, the XUV Aero and the S201 compact SUV. Maruti also has plans to enter this space in 2020, with a new electric car developed in collaboration with Toyota.

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