Govt Mulls Sops to Promote Switch from Old Vehicles to EVs | CORPORATE ETHOS

Govt Mulls Sops to Promote Switch from Old Vehicles to EVs

By: | May 15, 2018

May 15: In a bid to give the electric vehicle market a big push in the country, the central government could introduce incentive plans to those who make the jump from old vehicles to new electric cars. Incentives of up to Rs 2.5 lakh are being planned by the government to attract buyers into EVs.

The incentive will be reportedly made available for users who have been using old petrol or diesel vehicles. Cab aggregators and bus fleet owners could avail incentives of up to Rs 2.5 lakh upon scrapping their old bases and purchase of new EV under the initiative helmed by Rubicon Project.

Additionally, the government will also introduce incentives to buyers of electric two-wheelers. Incentives of up to Rs 30,000 will be provided to purchase of electric two-wheelers costing up to Rs 1.5 lakh. Incentives will be made available only on the condition that their former vehicles get scrapped, for which a certificate will have to be provided from the scrapping centre by the user.

The incentive is expected to cover around five lakh vehicles, and 80% of them are likely to be two and three-wheelers. However, opinions from within the government are also endeavouring support for a shift of focus to mass public transport including buses.

The initiative comes under the Rs 9400 crore package of the GoI to flourish the EV market in India. Government will also spend additional Rs 1000 crore to set up electric charging stations across the country. As per the plan, charging stations will be installed at a distance of 9 sq km in metros, identified smart-cities and various other cities. This will be in addition to installation of charging stations across the national highway at a distance of 25km from one another.