Rs 9,000 crore Sops to push Eco-friendly Vehicles

In Clean News, Environment, News

As part of a Rs 9,400-crore package for electric and hybrid vehicles, 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.

Buyers of electric two-wheelers that cost up to Rs 1.5 lakh will receive incentives of around Rs 30,000, a draft policy formulated by the government has proposed.

There are more incentives for cab aggregators and bus fleet owners to go green. Buyers of electric cars, which will operate as taxis, are expected to get sops of Rs 1.5 to 2.5 lakh for vehicles that cost up to Rs 15 lakh.

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.

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 demand incentive will cover a little over five lakh electric vehicles and over 80% of these will be two and 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.

For manufacturers of electric vehicle components such as motor, drive, power train and controller, the government has proposed to provide special capital investment subsidy up to 25 per cent.

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