Govt announces no plans to increase EV subsidies
ECONOMY & POLICY

Govt announces no plans to increase EV subsidies

The policy environment for encouraging the production and sale of electric vehicles (EVs) in India seems to be in a state of uncertainty. Despite the industry's hopes for an extension of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy scheme, the recent Union Budget, presented last month, did not include any new announcements regarding additional incentives for EV sales.

Furthermore, a scheme intended to boost domestic manufacturing of electric passenger cars has also been stalled since its hurried announcement in March, as its guidelines are still pending publication. Only one stakeholder meeting has occurred so far. The industry is already expressing dissatisfaction with this scheme, which supports domestic manufacturing and appears to align with the demands of certain global EV OEMs, including Tesla. Domestic OEMs have voiced objections to the concessions proposed for Tesla and other global manufacturers, leaving the matter unresolved.

Adding to the challenges facing the electric vehicle sector, the Ministry of Heavy Industries has firmly stated that there are no plans to increase subsidies for various categories of EVs. In response to a query about potential increases in subsidies to enhance EV adoption, Minister of State B S Varma indicated in a written reply to the Rajya Sabha that the Ministry is not considering any proposals to raise subsidies per unit for different types of e-vehicles. He attributed this decision to the absence of a slowdown in EV sales, noting that the current subsidies and incentives are deemed sufficient. According to government data, EV registrations have surged nearly tenfold over the past five years, growing from approximately 1.74 lakh in 2019-20 to 16.8 lakh in 2023-24.

The policy environment for encouraging the production and sale of electric vehicles (EVs) in India seems to be in a state of uncertainty. Despite the industry's hopes for an extension of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy scheme, the recent Union Budget, presented last month, did not include any new announcements regarding additional incentives for EV sales. Furthermore, a scheme intended to boost domestic manufacturing of electric passenger cars has also been stalled since its hurried announcement in March, as its guidelines are still pending publication. Only one stakeholder meeting has occurred so far. The industry is already expressing dissatisfaction with this scheme, which supports domestic manufacturing and appears to align with the demands of certain global EV OEMs, including Tesla. Domestic OEMs have voiced objections to the concessions proposed for Tesla and other global manufacturers, leaving the matter unresolved. Adding to the challenges facing the electric vehicle sector, the Ministry of Heavy Industries has firmly stated that there are no plans to increase subsidies for various categories of EVs. In response to a query about potential increases in subsidies to enhance EV adoption, Minister of State B S Varma indicated in a written reply to the Rajya Sabha that the Ministry is not considering any proposals to raise subsidies per unit for different types of e-vehicles. He attributed this decision to the absence of a slowdown in EV sales, noting that the current subsidies and incentives are deemed sufficient. According to government data, EV registrations have surged nearly tenfold over the past five years, growing from approximately 1.74 lakh in 2019-20 to 16.8 lakh in 2023-24.

Next Story
Infrastructure Urban

With a strong international presence, we are poised for further expansion

EPC company Varindera Constructions (VCL) has completed 31 construction projects in the past 10 years with 20 ongoing projects in India and overseas as in March 2024. Varinder Kumar Garg, Chairman, shares factors behind the company’s stellar performance in its residential, commercial, metro, railway and institution projects and the material magnitude of the Hasimara Air Force Station project, which plays a key role in deployment and operations of Rafale jets in India, as well as his perspective on the latest technologies, sustainability, skill shortage and the company’s internati..

Next Story
Infrastructure Urban

Campal Stadium Project Delayed

The football stadium and parade ground project in Campal, Panaji, which was initiated under the smart city plan, has yet to be completed, even though it is over a year past its original deadline. The project started on March 21, 2022, and according to the initial work order, it was supposed to be finished by September 20, 2023. Imagine Panaji Smart City Development Ltd (IPSCDL) has reported that 98% of the work is complete, with the final 2% expected to be finished by March 2025. "A small area where the concrete batching plant is situated needs completion," they said. The project's total est..

Next Story
Infrastructure Urban

Cleanliness Control Centre to Monitor Work, Complaints 24X7

Jaipur's cleanliness management system is set to be more efficient with the Integrated Command and Control Centre now operating 24/7. On Friday, Arun Kumar Hasija, CEO of Jaipur Smart City Limited, issued orders to implement this change. Hasija explained that the centre will supervise door-to-door refuse collection, sanitation operations, and mechanized cleaning activities. Special attention is being given to night-time cleaning across the city, with advanced machinery being used to sanitize road dividers in areas like the Walled City. The centre will now operate round-the-clock to improve c..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000