Battery-run vehicles to become cheaper

Updated on Apr 08, 2008 11:48 PM IST

Battery-operated cars and bikes will soon be cheaper in the Capital, with the Delhi Govt deciding to give subsidy for the purchase of such vehicles, reports Amitabh Shukla.

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Hindustan Times | ByAmitabh Shukla, New Delhi

Battery-operated cars and bikes will soon be cheaper in the Capital, with the Delhi government deciding to give subsidy for the purchase of such vehicles.

A Cabinet note, prepared by the Environment Department, is ready and is likely to be passed in the next meeting of the Council of Ministers.

“The ambient air quality of Delhi has been a source of concern. As part of an appropriate strategy to combat air pollution in Delhi, it is imperative that zero pollution vehicles like battery operated ones, are given encouragement and support by the Delhi government,” the note said. The note said the subsidy would allow the citizens of Delhi to have access to clean-fuelled vehicle and allow them to contribute their bit in cleaning up the air quality of the city.

So far, the governments of Karnataka and Rajasthan have exempted battery-operated vehicles from road tax. Andhra Pradesh, Goa, Orissa, Pondicherry, Rajasthan, Uttarakhand and Chandigarh have provided VAT exemption to battery-operated vehicles.

According to the data compiled by the Environment Department, United Kingdom has provided 100 percent depreciation, free parking and exemption of congestion tax in London on these vehicles. Government of Japan, Norway, Sweden and Ireland have given subsidy of varying amounts. United States and Italy too have given subsidy on electric cars according to the data.

The government estimates that if subsidy were provided at least 2000 battery cars could be sold in Delhi in this financial year and the amount of concession would be Rs 25 crore. If the subsidy on two and three wheelers run on battery is added, the subsidy component of the government would be around Rs 35 crore. The Environment Department has proposed to subsidise these vehicles from the Air Ambience Fund wherein 25 paise has been levied on per litre of diesel from February 7 this year. Around Rs 48 crore is expected to be collected from this fund.

Sources in the government said the component of subsidy on each battery operate vehicle has not yet been decided as yet. “We want it to be around 15 percent so that the difference between these vehicles and the petrol-diesel ones is significant,” a senior official said.

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