E-bike makers want 30% subsidy & roll back of CVD

E-bike makers want 30% subsidy & roll back of CVD
PTI
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First Published: Tue, Jun 23 2009. 04 23 PM IST
Updated: Tue, Jun 23 2009. 04 23 PM IST
Chandigarh: Electronic bike makers want countervailing duty (CVD) on the import of e-bike components to be rolled back and 30% subsidy on e-bikes under New and Renewable Energy Policy in the upcoming Budget in order to provide impetus to the industry.
“The government should announce (in the forth coming Budget) some policy support for e-bike industry by withdrawing CVD on the import of spare parts of electronic bike that has hindered the growth of the domestic e-bike industry,” Hero Electric CEO Surinder Gill said.
The Centre currently charges 8% CVD on the import of e-bike components. For making e-bikes, firms import motor, battery, and other electronic and mechanical parts from China and Taiwan. Over 55% of components are imported.
Also, in order to encourage the use of environment friendly vehicles, the government should provide at least 30% subsidy on the purchase of bike under the New and Renewable energy policy. “Close to 30 countries are giving such subsidies on e-bikes and Indian government should also seriously think over it,” he said.
The industry also wants infrastructure support in the form of charging stations for e-bikes and parking provisions in the proposed residential and commercial buildings.
The industry is confident of selling 6-8 lakh e-bikes in next 3-4 years if the Centre accepts their demands against the present expected size of three lakh e-bikes growing at a pace of 10-15%.
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First Published: Tue, Jun 23 2009. 04 23 PM IST