Incentives for electric vehicles

Finally a breather for electric vehicles in India. Ministry of New and Renewable Energy (MNRE) has announced massive incentives for electric vehicles. Customers can now buy electric vehicles at lower rates. As per this scheme the manufacturers of Electric Vehicles will receive financial incentive for each Electric Vehicle sold in India. The scheme envisages incentives of up to 20% on the ex-factory prices of the vehicles, subject to a maximum limit. The cap on the incentive will be –Rs.4,000 for low speed electric two wheelers, Rs.5,000 for high speed electric two wheelers and Rs.1 lac for an electric car. For this fiscal, the government will support 20,000 units and 10,000 units of low and high speed two-wheelers respectively, while it will be 80,000 units and 20,000 units in 2011-12.

Straightfrmtheheart: This is surely a path breaking announcement. We could see more Reva’s and Yo bykes in India. But is it a green measure? definitely is a subject of debate. India generates most of its electricity through coal plant (nuclear,tidal, wind being others). To produce 1MW of electricity it emits 0.84tonne of Co2.  The move might put a burden on already starved Indian power corporations and might pass the buck to electricity generating power units from automotive industry. Need to think!

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