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EV makers demand Rs 20,000 cr in the next two years for promoting vehicles

SMEV expects the government to target at least one million EVs in top-10 most-polluted cities across India

Press Trust of India  |  New Delhi 

There's a better answer than electric cars

(EV) makers' body Wednesday sought an allocation of Rs 20,000 crore in the next two years for promoting EVs in the country and also urged the government to impose a "notional green cess" on conventional vehicles in the upcoming interim Budget to fund the drive.

Spelling out their budget wish list, the (SMEV) also said phase-II of the Faster Adoption and Manufacturing of Hybrid and (FAME) must be announced with a six-year plan and time-bound implementation.

"Electric mobility needs stable and long-term policy support, concentrated dose of customer incentives and massive awareness campaign to reach a target of 30 per cent EVs by 2030," said

He further said expects the government to target at least one million EVs in top-10 most-polluted cities across

"SMEV recommends a notional green cess on all IC (internal combustion) engine vehicles to create this corpus rather than dipping into exchequer," he added.

Ayush Lohia went to the extent of seeking extension of the FAME scheme by "a minimum of 10 years, therefore making it long-term".

"In addition, GST (goods and services tax) on all categories of electric vehicles, including batteries, should not exceed 5 per cent with input tax credit availability," he said.

SMEV said Indian supply chain for critical powertrain components of EVs will come up only if there are enough such vehicles on the road.

"Till then, the current import duty concessions should continue, so that the vehicles do not end up becoming costlier," Gill added.

The EV industry body further said: "The government should give more thrust on under the smart city project which is missing, currently."

The interim Budget is expected to be presented on February 1.

First Published: Wed, January 16 2019. 15:05 IST