In a move that “will save Rs.30,000 crore in the next eight years on fuel,” the country will spend at least Rs.22.5bn over the next eight years to promote electric and hybrid vehicles, reports said citing S. Sundareshan, Secretary, Department of Heavy Industries.
Of this amount, the government will provide some Rs.130-140bn, reports said.
With an aim to reduce the dependence on fossil fuels, auto makers and the government plan to put six million electric vehicles on road by 2020, according to a new policy approved on Wednesday.
The government will fund research and development, infrastructure and subsidies, Sundareshan, added.
The policy will benefit the makers of electric scooters such as Electrotherm (India) that makes YO bykes, the Munjal family-owned Hero Electric, and India’s sole manufacturer of electric cars, Mahindra Reva Electric Vehicles.
The department of heavy industries proposed income tax incentives for buyers of electric vehicles in its budget recommendations, reports said earlier.