Lucknow Press
New Delhi. The central government has indicated the abolition of subsidy on electric vehicles. Union Minister Nitin Gadkari said on Thursday that there is no need to give subsidy for electric vehicles (EV), as consumers are now choosing EV or CNG vehicles themselves.
Addressing the BNEF Summit, Gadkari said that initially the cost of manufacturing electric vehicles (EV) was high. But as the demand increased, the production cost kept decreasing. Due to which there was no need for further subsidy. The Road Transport and Highways Minister said that consumers are now choosing electric and compressed natural gas (CNG) vehicles themselves. And I do not think we need to give more subsidy for electric vehicles (EV). The minister said that GST on electric vehicles (EV) is less than petrol and diesel vehicles.
He said that in my view, the manufacturing of electric vehicles (EV) no longer needs to be subsidized by the government. The demand for subsidy is no longer justified. At present, 28 percent GST is levied on vehicles powered by internal combustion engines, including hybrids, and 5 percent on electric vehicles (EV).
Earlier on Wednesday, Union Heavy Industries Minister HD Kumaraswamy said the government would finalise the third phase of its flagship electric mobility adoption scheme FAME in a month or two. He said an inter-ministerial group is working on the inputs received for the scheme.
Efforts are being made to resolve issues in the first two phases of the (Hybrid and) Electric Vehicles (FAME) scheme. FAME 3 will replace the temporary Electric Mobility Promotion Scheme (EMPS) 2024, which is due to expire in September.
