Government Of India May Spend Rs. 13000 Crore To Promote Electric Vehicles

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The current market scenario may seem favorable for diesel cars more than petrol cars but in the long run even diesel vehicles will become as unacceptable as petrol vehicles are right now. This is a fact as petrol and diesel are non renewable sources of energy and we cannot use them for as long as we want. Engineers have been working on alternative sources of energy and one of the most promising of them is electric energy.

Since a couple of years, electric cars are present in the market, not just in India but globally as well but the bottom line is that hardly any buyers consider electric vehicles. Individuals have their own set of reasons for not liking electric vehicles but one day we all will have to.

Several initiatives have been taken by the Indian government but the fact of the matter is that the infrastructure is not strong enough to support electric and hybrid vehicles and now the government is planning to invest Rs. 13,000 crore over a period of 8 years for promoting electric and hybrid vehicles. Department of Heavy Industries is also seeking approval on the same from Cabinet in the coming three months.

Mahindra Reva NXR Electric Car

image – Mahindra Reva NXR Electric Car

Department of Heavy Industries is planning to add a clause in the draft National Mission for Hybrid and Electric Vehicles (NMHEV) suggesting PSU banks to offer loans to customers opting for electric vehicles.

A senior official from the Department of Heavy Industries said,

“The government will put in around Rs 13,000 crore till 2020. This is mainly to incentivize the sector to attract private players,”

The reserved money will be spent wisely not only on setting up new research and development centers in several areas but also in providing tax benefits to customers. These research and development centers will help in bringing down the production cost of electric vehicles which are quite expensive owing to the technology incorporated.

The official added,

β€œIn the coming three months, we will send a proposal to the cabinet in regard to approve the same. Also the investment will help the government in saving Rs. 27,000 crore on fuel costs.”

Countries such as UK, France and Germany promote the electric cars and hybrid cars by offering incentives to prospective buyers. In the coming years we can expect a similar strategy from Indian govt. side as well. We will keep you posted on any decisions or policy announcements in this regard, stay tuned to Car Blog India for latest updates.

via – BS

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