Scrap Old Car For A New Electric Vehicle And Get Rs 2.5 Lakh From The Government

By Rahul

The government may soon offer incentives of up to Rs 2.5 lakh to those who scrap old petrol and diesel vehicles for electric cars. According to TOI, this is part of the government's R 9,400 crore package. The government is pushing for sales of electric and hybrid vehicles in India.

Electric Car Buyers To Get Rs 2.5 Lakh Incentives In Exchange For Their Old Cars

A draft policy by the government proposed incentives of around Rs 30,000 for people buying electric two-wheelers costing up to Rs 1.5 lakh. The incentives are available for all range of vehicles in India.

The incentives also apply for cab aggregators and bus fleet owners. These fleets are expected to receive incentives of Rs 1.5 to 2.5 lakh for vehicles costing up to Rs 15 lakh. Private owners who scrap their BS-III vehicles will also get similar incentives, provided they produce a certificate from the scrapping centre.

Electric Car Buyers To Get Rs 2.5 Lakh Incentives In Exchange For Their Old Cars

The government is expected to spend over Rs 1,500 crore over the next five years on passenger vehicles and two-wheelers. They are also said to be planning to open up electric charging stations across the country. This is expected to cost an additional Rs 1,000 crore.

Electric Car Buyers To Get Rs 2.5 Lakh Incentives In Exchange For Their Old Cars

According to the proposal, a charging station will be set up every nine sq km apart in metros, identified smart-cities and million-plus cities. Apart from this, highways will also get charging station on either side at a distance of 25km from one another. This includes the Delhi-Jaipur, Delhi-Chandigarh, Chennai-Bangalore and Mumbai-Pune highways.

Electric Car Buyers To Get Rs 2.5 Lakh Incentives In Exchange For Their Old Cars

According to the ‘Faster Adoption and Manufacturing of Hybrid & Electric' (FAME), the main focus will be on public transport. These include taxis and three wheelers.

The government plans to spend over Rs 5,800 crore to help push demand for electric vehicles. The incentive will cover around five lakh vehicles out of which 80 percent will be two and three-wheelers.

Electric Car Buyers To Get Rs 2.5 Lakh Incentives In Exchange For Their Old Cars

However, a section of the government believes they should focus on public transport such as buses instead of two and three-wheelers.

They stated, "If the target is to reduce the emission of greenhouse gases, should we not focus on improving public transport by deploying more buses running on cleaner fuel?"

"For the same Rs 5,800 crore, at least 50 lakh buses can be run across the country, on the lines of orange buses in Delhi, on 'operation-expenditure model'."

Also Read: GST To Reduce On Electric Car Batteries In India

Thoughts On The Government's New Green Incentive Proposal

Electric Car Buyers To Get Rs 2.5 Lakh Incentives In Exchange For Their Old Cars

The Government is pushing aggressively towards improving sales of electric vehicles in India.

They will also provide investment subsidy of 25 percent for manufacturers of EV components like motor, drive and powertrain.

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Read more on: #auto news
Article Published On: Tuesday, May 15, 2018, 10:31 [IST]
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