The Delhi government is highly likely to roll out the subsidy scheme under the recently revealed Electric Vehicle Policy by next week. The new Electric vehicle policy aims at registering around five lakh electric vehicles in the national capital in the next five years.
According to recent media reports, a demonstration of new software which will be used for the disbursal of the subsidy has already been made in a meeting with Transport minister Kailash Gahlot.
ICICI Bank has developed the software, according to the sources. The subsidy will be paid through this software.
What is the New Electric Vehicle Policy?
- Under the new electric vehicle policy, the government will waive off the registration fee and road tax for the next three years and provide an additional incentive of ₹1.5 lakh on the purchase of electric vehicles in the national capital.
- The government will allocate ₹1.50 lakh incentive and above previous tax incentive of up to ₹2.5 lakh announced under FAME II last year by the central government.
- Additionally, all-electric vehicles bought under the new EVP will also bear a unique identification sticker alongside its anyway mandatory green number plates.
- Interestingly, these benefits will only apply to the first 1,000 private buyers in the Delhi region.
What is the need for an Electric Vehicle Policy?
- According to the chief minister, this policy aims towards reducing air pollution. It has however reduced by over 25% over the past 5 years. With this policy, the government aims to reduce it much further in the nearing future.
- Additionally, The new EV policy aims towards making new job opportunities. It will boost the economy which has taken a huge hit due to the on-going Coronavirus pandemic.
What type of incentives will the new EV policy offer?
The centre already offers huge incentives and offers which has provided a boost to the growth of EVs in the country. Delhi’s EVP also has a lot to offer up and above the FAME II scheme which includes:
- Two-wheelers- Incentive up to Rs 30,000
- Four-wheelers- Incentive up to Rs 1,50,000
- E-rickshaws- Incentive up to Rs 30,000
- E-commercial goods carrier- Incentive up to Rs 30,000
The Delhi government has also announced a new vehicle scrapping incentive under which if a person exchanges their old, combustion vehicle with a new EV, the scrapping incentive will still be provided to the designated person.1