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EV manufacturers, startups enthused by new policies of Delhi and Telangana (Mint)
EV manufacturers, startups enthused by new policies of Delhi and Telangana (Mint)

EV manufacturers, startups enthused by new policies of Delhi and Telangana

The new policies of both state governments follow the centre’ announcement to earmark 10000 crore for subsidies on electric vehicles and related infrastructure, through second phase of the Faster Adoption and Manufacturing of Electric Vehicle (FAME) scheme

DELHI : As state governments of Delhi and Telengana unveiled their respective policies to promote manufacturing and sales of electric vehicles, manufacturers and startups in the electric mobility ecosystem appreciated the efforts of both state governments. The new policies of both state governments follow the centre’ announcement to earmark 10000 crore for subsidies on electric vehicles and related infrastructure, through second phase of the Faster Adoption and Manufacturing of Electric Vehicle (FAME) scheme.

According to the announcements made by the Delhi government, the new policy will offer subsides worth 30000 crore on electric two and three-wheelers, while the same on four wheelers will be 1.5 lakh. The policy also envisages electric busses to form atleast 50% of the total fleet.

The Telengana state government on the other hand will subsidise purchase of two lakh two-wheelers, 20000 three wheelers and 10000 goods carriers and will earmark zones and investments for manufacturing of electric vehicles and related parts in the state.

Both governments have also exempted these vehicles from road tax and registration fees.

According to Mahesh Babu, managing director and chief executive, Mahindra Eletric, the well-thought electric vehicle policies will further boost the sales in the respective states since both the policies are aimed at faster adoption of such zero – emission vehicles both in personal and shared mobility segments.

“Extending the incentives to personal buyers will further help the development of the entire ecosystem. In the near future, the open-permit system for electric autos in Delhi will promote zero-emission last and the first-mile green mobility in the capital. The policies are in-line with India's aim to reduce its oil-import bill and air-pollution," added Babu.

The Naredra Modi government has been trying to promote usage of electric vehicles to reduce pollution in major cities and dependence on crude oil. The union government has also been urging vehicle manufacturers and start ups to locally develop and manufacture electric vehicles and charging stations to promote India as major hub for manufacturing of such vehicles.

“This policy will provide more push to the existing electric vehicle architecture than the current FAME II scheme. The customers who were unable to get subsidy under the central government’s scheme due to certain restrictive norms, now have a chance to avail subsidy under this scheme. It has also set an example of how a policy can run without using exchequer money," said Sohinder Gill, director general, Society of Manufacturers of Electric Vehicles (SMEV).

“These measures go about to showcase the importance of electric vehicle as a means of transportation for consumers and enterprise players. With the popularity of e-commerce players and rise in home deliveries, logistics fleets comprise of the majority of traffic plying on the road," said Deepak MV, chief executive and co-founder, Etrio, an electric vehicle fleet service provider.

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