As a part of the 11th Plan from the Government of India, electric vehicle industry is expecting to receive an incentive package of Rs. 95 crores. The 11th plan will come in force from 2010- 2012 and even before that, the Government is planning to provide financial incentives to boost electric vehicles in Indian market. The plan comes from the Ministry of New and Renewable Energy (MNRE).
The scheme, effective from November 11, envisages incentives of up to 20 per cent on ex-factory prices of the vehicles, subject to a maximum limit. The cap on the incentive will be Rs 4,000 for low speed electric two-wheelers, Rs 5,000 for high speed electric two-wheelers, Rs 60,000 for seven seater three-wheeler and Rs one lakh for an electric car.
“The government will take up dissemination of two wheelers, three wheelers and four wheelers Battery Operates Vehicles (BOV) and R&D and technology demonstration and other activities in the area of Alternative Fuels for Surface Transportation at a total cost of Rs 95 crore during the remaining period of the 11th Plan," said notification from the ministry.
The government expects to incentivise 100 units of three-wheelers and 140 units of passenger cars during the remaining period of current fiscal and 166 units and 700 units in the next financial year.
