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What can we expect from this Budget on electric vehicles? How much subsidy can we expect on electric vehicles?
- Siva Prasad
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The government is planning to allocate Rs 1,400 crore for electric vehicles (EVs). If announced in the Budget, it will be a great start and boost the sales of EVs. According to NEMMP (National Electric Mobility and Mission Plan) released in January 2014, the total investment required is around Rs 24,000 crore. Of this, the government is willing to bear the burden of Rs 10,000- Rs 11,000 crore while the rest is likely to come from industry stakeholders.
On the question of subsidies to end consumers, the Ministry of New and Renewable Energy (MNRE) announced a financial incentive scheme for electric vehicle buyers in 2012. This incentive was passed on upfront by the manufacturer to the customer and the manufacturer claimed it from the government later. The scheme which ended in 2012 envisaged incentives of up to 20% on the ex-factory prices of the vehicles, subject to a maximum limit. The cap on the incentive was Rs 4,000 for low speed electric two wheelers, Rs 5,000 for high speed electric two wheelers and up to Rs 1 lakh on electric cars.