Govt planning subsidy on electric vehicles

Update: 2014-07-25 22:49 GMT
Delhi is reportedly in the process of implementing the National Electric Mobility Mission Plan 2020 (NEMMP), under which the electric car makers are entitled to benefit to the tune of about Rs 13,600 crore.

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-operated rickshaws, which have mushroomed all over the city.

While the government is yet to take a final call on the amount of subsidy, there are indications that the electric vehicles may enjoy a subsidy of about 35 per cent while the electric vehicle conversion kits could be subsidized 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 to run a pilot programme to offer subsidies to those willing to retro-fit their cars with a specialized electric conversion kit. The kit can be used in conventional vehicles which are less than three year-old.

At present, only one company in the country supply the conversion kit, which costs about Rs one lakh. But the government hopes to see the participation of more players which would automatically result in the further lowering of overall cost. In order to encourage car users switch to electric vehicles, the government will also be installing battery charging facilities at every 2-3 km in the city.

Considering the need to improve the environmental pollution, the BJP-led government was planning to fast-forward the NEMMP 2020, which was first unveiled by former Prime Minister Manmohan Singh.

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