Subsidy for e-cars - Government may offer up to Rs 2.5 lakhs
Posted on: 28/Feb/2019 4:51:12 PM
As per one of its main targets for promoting green fuel via a special Rs. 10000 Crore package, the central government is set to announce a subsidy of up to Rs 2.5 lakhs for 60,000 electric cars and a dole of up to Rs 20,000 for 20,000 hybrid cars that are bought over the next three years.
As gathered from reliable sources, a large part of the funds would be allocated for electric 2-wheelers, 3-wheelers, and buses used for the public. Even e-rickshaws will be eligible for the subsidy.
Going by this formula, which is linked to the battery capacity, a buyer of Mahindra E-Verito may get a subsidy of around Rs 1.5 lakhs, while a buyer of a good quality electric two-wheeler could get around Rs 40,000. For electric buses, the subsidy would be up to Rs 60 lakhs.
As a part of the 2nd Phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) India Scheme and also in order to create an immediate and visible impact, the central cabinet is set to take up this proposal,
This proposed scheme is likely to be effective from April. The central government has also planned to put a cap on the ex-factory vehicle up to Rs. 15 Lakhs (except buses) in order for the buyers to avail this facility.
The calculation of the subsidy offered will be based on the battery capacity of the vehicle. It will be Rs.10000 per KWh for all vehicles and Rs. 20000 per KWh for the buses.
It is gathered that the demand incentive in the subsidy form will have a major impact on the 2 and 3-wheelers. As the prospective buyers would find it attractive to select the electric vehicle by paying the same amount as they would have spent on the petrol vehicle.
A reliable source further remarked: There will also be a huge focus on expanding the changing infrastructure in cities and along highways to meet the demand. Another focus area will be on developing our capacity to produce Lithium-ion batteries for vehicles.
