It was not long back since the Budget 2019 was revealed and the auto industry along with the EV makers kept waiting patiently for their share of announcements but no major plans were disclosed in support to the industry. But now the government has announced the allotment of Rs 5,000 Cr fund for the support and growth of the electric vehicle infrastructure in the country by 2025. The plan comes in as an integral part of the momentous Rs 88,500 Cr scheme under which Rs 83,500 Cr has been reserved for equipping the current power stations with the latest technology to curb emissions and greenhouse gases, while rest of the funds will go to building modern EV infrastructure.
The development of the electric vehicle infrastructure will take place in the 70 major Indian cities within the next five to six years. The move has been made to encourage electric vehicle sales in India, and to go 100% electric by the year 2030. Also, it comes out as a silver lining for the new EV makers who are planning to step in the market but are still in the contemplating stage because of the slow market growth.
What changes will this bring in the near future?
With advancement in the EV supporting infrastructure, you can expect a number of new electric auto companies to step in the market and thus available list of options will more. With large numbers of buyers opting for electric vehicles, the demand for traditional combustion engines will stumble significantly. And this will also be indirectly linked to reducing carbon footprint and a greener tomorrow.
With input from Reuters!
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