Govt plans 25- 50% subsidy on electric cars

Delhi is reportedly in the process of implementing the National Electric Mobility Mission Plan 2020, under which the electric car manufacturers would be entitled to benefits to the tune of about ` 13,600 crores. The city administration is also contemplating a substantial subsidy to convert its existing fossil fuel- powered cars into electric vehicles. The city’s civic bodies are giving final touches to the new e- policy for the battery- operat- ed rickshaws, which have mushroomed all over the national capital.

The city administration is yet to take a final call on the amount of subsidy, but there are indications that the electric vehicles may enjoy a subsidy of about 35 per cent while the electric vehicle conversion kits could be subsidised by 50 per cent. It is learnt that the ministry of heavy industry has already moved a proposal to the Union finance ministry, recommending 35 per cent subsidy to electric vehicles and 25 per cent to the plug- in hybrid cars that can operate on pure electric mode for at least 15 km.

The government is also in the process of runing a pilot programme to offer subsidies to those willing to retro- fit their cars with a specialised electric conversion kit. These kits can be used in conventional vehicles, which are less than three years old.

At present, only one company in the country is supplying the conversion kits, which cost about ` 1 lakh. But the government hopes to see the participation of more players, which would automatically result in the lowering of overall cost and hence the amount of subsidy. In order to encourage car users to convert to electric power, the city administration would reportedly be installing battery charging facilities at every 2 to 3 km distance in the state.

Considering the need to improve the environmen- tal pollution, sources said that the BJP- led government was planning to fastforward the NEMMP 2020, which was first unveiled by former Prime Minister Manmohan Singh. Automakers like Maruti Suzuki, Mahindra Reva, Tata Motors, Kinetic, Bajaj Auto were said to be working on hybrid models for India. The government move to provide subsidy to electric vehicles is expected to steer automakers on the road to speed up their adoption of the power vehicle strategies, which is going to be the technology of the future.