Government states EV subsidies only for commercial vehicles, PVs not included

Under the FAME scheme, which has a budget of Rs 10,000 crore, subsidies are allocated to electric three and four-wheelers for commercial and fleet operators. In the case of two-wheelers, the same is also applicable to vehicles of personal use.

By: | Published: July 20, 2019 2:44 PM
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Subsidies for the promoting the faster adoption of electric vehicles in India are only going to be valid for commercial vehicles and PVs are not going to be included in the same, according to the government. Minister of State for Heavy Industries and Public Enterprises, Arjun Meghwal said that the government is expecting that India is going to adopt electric vehicles in "all-natural course". This included all vehicles segment like bikes, cars, trucks, buses as well as e-rickshaws. At the same time, he emphasised the the switch to electric vehicles was the need of the hour in order to reduce carbon emissions according to the Paris Agreement.

"The government has made clear its intention to promote electric mobility through commercial fleet owners and incentives will be only offered to them," Meghwal said here at India UK Electric Mobility Forum 2019. Under the FAME scheme, which has a budget of Rs 10,000 crore, subsidies are allocated to electric three and four-wheelers for commercial and fleet operators. In the case of two-wheelers, the same is also applicable to vehicles of personal use. A number of automobile manufacturers have been asking the government to provide subsidies to electric four-wheelers for private usage in order to make them affordable which is going to further the cause of electric mobility in India.

Meghwal further added that "We will have to move towards the EVs to reduce carbon emissions as per the Paris Agreement. It is the right of future generations to have a smokeless environment. It is our goal," He further added that "Proposals are invited from cities that intend to develop charging infrastructure in million-plus cities as per 2011 census. Initially, 1,000 EV charging stations are earmarked for development through the EOI (expressions of interest),"

These charging stations will be sanctioned in different cities after evaluation of the proposals received under the EOI, the minister said. "We also plan to connect all charging stations with a grid-connected solar power plant of required capacity as per new renewable energy guidelines so as to ensure grid stability and green energy for EVs," he added. "The government also wants to have an electric highway. We are working on that front. The shift towards EVs will not only tackle air pollution but also reduce the import bill," Meghwal said.

He added that the Niti Aayog has recommended making electric two- and three-wheelers mandatory from 2025 and all new four-wheelers for commercial use within city limit by April 2026. The government think tank has also recommended even phase-wise introduction of commercial four-wheelers by fleet owners including taxi aggregators from 2.5 per cent in 2020-21 to 40 per cent usage in 2025-26, he said. "Moreover, it was recommended that 30 per cent of new intra-city buses should be electric by April 2026," Meghwal said. He said the government has put in statutory safeguards to promote green mobility in the country.

Inputs: PTI

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