Will support 62,000 e-cars, buses, e-bikes through subsidies: Gadkari

Union Minister Nitin Gadkari

To boost electric mobility, the government aims to support through subsidies about 62,000 electric passenger cars and buses, besides 15 lakh electric three- and two-wheelers, Parliament was informed on Thursday.

The focus is also on creating electric charging infrastructure, Road Transport and Highways Minister Nitin Gadkari told the Lok Sabha in a written reply.

Phase-II of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme is being implemented with a total budgetary support of Rs 10,000 crore, he added.

"This phase focusses on supporting electrification of public & shared transportation and aims to support, through subsidies, approx. 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers.

"In addition, creation of charging infrastructure is also supported to address range anxiety among users of electric vehicles," the minister said.

Stressing that all vehicles will continue to be registered as long as they meet the requisite safety and emission standards, he said as per information from the Department of Heavy Industry (DHI), 98 electric vehicle models (32 two-wheelers, 50 three-wheelers and 16 four-wheelers) have been registered under FAME India Scheme Phase-II as on February 8, 2021.

He said presently GST on electric vehicles is 5 per cent and proposal for further reduction of tax on such vehicles is not under consideration.

Incentives are being provided to the purchasers of e-vehicles in the form of an upfront reduction in the purchase price.

"Further, the incentive is linked to battery capacity i.e. Rs. 10,000/KWh for e-2W, e-3W and e-4W," he said.

Gadkari said his ministry has issued regulations and advisories to promote the use of electric vehicles.

These include retro-fitment of hybrid electric system or electric kit to vehicles, "registration mark for Battery Operated Vehicles to be in Yellow colour on Green background for the transport vehicles and, for all other cases, in White colour on Green background" and "specifications for the grant of licence to age group of 16-18 years to drive gearless E scooters/ Bikes upto 4.0 KW."

Other initiatives include exemption to battery operated transport vehicles and transport vehicles running on ethanol and methanol fuels from the requirements of permit.

He said advisory has been issued to all states and Union Territories to promote use of electric vehicles, besides advisory regarding sale and registration of electric vehicles without batteries.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel