Government boosts funds for electric vehicles in India
- 03 July 2012
NEW DELHI: Indian Government plans to invest around Rs 13,000 crore (US$2.3 billion) over the next eight years to boost the adoption of electric and hybrid vehicles in India.
The earmarked funds will go towards projects that will lower production costs and accelerate low carbon vehicle markets, including research and development centers and tax incentives.
A senior official from the Department of Heavy Industries has said: "The Government will put in around Rs 13,000 crore until 2020. This is mainly to incentivize the sector to attract private players." The official also suggested that the investment will save the Government over double the same amount on fuel costs.
The Department is expected to seek approval from the Cabinet for the plans within the next three months. It will include a clause in the draft National Mission for Hybrid and Electric Vehicles (NMHEV) that suggests banks offer loans to customers for purchasing electric vehicles.
As well as EV purchasing incentives, under the NMHEV:
- it will be mandatory for new housing to have EV charging points
- pilot EV zones will be implemented in heavily polluted cities
- manufacturers will be encouraged to produce components for alternative fuel cars.
Leading manufacturers are already getting involved with many of the new projects. As questions had previously been raised on the viability of EV scale-up in India, the Government action on driving the NMHEV forward is now making the wide-scale adoption of EVs in India possible.
Aditi Dass, Director of Technology Programs India, The Climate Group said: “It’s an exciting time for the EV future in India and despite existing challenges, everyone working in the low carbon space is waiting in great anticipation for the detailed guidelines of NMHEV. The incentives to promote this sector is critical to mainstream EVs into our transport systems and the Government’s calculated and well-thought approaches seem exactly aligned to the aim of integrating more EVs in Indian roads and making them a part of India’s Clean Revolution story.”