Home / News / India /  Delhi govt withdraws subsidies on electric cars. Here's why

Delhi has no plans to extend subsidies on the purchase of electric cars as the AAP govt's push for electric four-wheelers has gained the required momentum, transport minister Kailash Gahlot said on Tuesday. 

According to Delhi's EV policy launched earlier last year, the state govt offered subsidies on the first thousand electric cars bought in the national capital. 

The EVs received subsidy of 10,000 per kWh of battery capacity, with benefits being capped at 1.5 lakh per vehicle. Road tax and registration fees for these vehicles were also waived. 

Kailash Gahlot told Hindustan Times, “The electric cars segment has received the required push in Delhi. Our focus now is to tap the two-wheeler, freight and public transport segments of electric vehicles (EVs) as they constitute a major chunk of Delhi’s over 10 million registered vehicles. They also ply on the road more as compared to private cars, thereby causing more pollution."

“Actually, a subsidy is not required for e-cars as such because those who can afford to pay around 15 lakh for a vehicle do not care if the cost is 1-2 lakh more, sans the subsidy. Our aim is to provide the subsidy to those who need it the most, and they include auto drivers, two-wheeler owners, delivery partners and so on," Gahlot was quoted by HT.

For other electric vehicles, which include two-wheelers, the subsidy amount was 5,000 per kWh of battery capacity and a maximum benefit of 30,000 per vehicle.

"We are witnessing good results of our electric vehicle policy and the adoption of such vehicles is gaining pace. We are committed to realising the dream of making Delhi the country's electric vehicle capital, according to the vision of Chief Minister Arvind Kejriwal," Gahlot added.

The Delhi government had launched its electric vehicle policy in August last year. 

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