Govt. should offer an additional subsidy for e-vehicles purchase: Niti Aayog
The NITI Aayog has suggested the government to provide subsidies for electric vehicle purchase over and above the prevailing subsidy scheme for electric vehicle adoption under the Faster Adoption and Manufacturing the Electric Vehicles (FAME) scheme besides comprising EVs under the priority lending sector.
"Government should give EV buying subsidy over and above FAME II subsidy along with interest subvention on loan amount taken for EV purchase," the Aayog has said in its status quo analysis of electric mobility in India.
Further, the Aayog has accentuated the need for the creation of non-financial incentives such as priority lanes, reserved parking for EV-only vehicles in commercial places and shopping complexes.
"Incentives for vehicle scrapping financing are needed besides comprising EVs and allied business in the priority lending sector," it said.
Quoting the example of Madhya Pradesh, the Aayog has recommended the government to consider issuing mobility bonds while introducing a fee-bate concept for funding of policy provisions under which additional taxes could be imposed on conventional fuel vehicles
Under other initiatives, the Aayog further recommended green zones be determined within cities to permit only EVs while heavy taxes to be charged on conventional fuel vehicles.