The Indian Government is trying to figure out all the subsidies which could be granted to the electric vehicles. If everything goes according to the plan then the government will issue an official word about this by the start of the business year. The news was declared by additional secretary of Ministry of heavy industries and public enterprises in response to a question asked at the 4th SIAM Diesel Conference which was held in Mumbai.
According to the estimates, Sharma has said that the subsidies can work out around Rs 12,000 crores over a period of 70 years as the total numbers of electric vehicles go up. The first year estimates have been put around Rs 2,000 crores.
The government at present is in talks with the Union Finance ministry to facilitate more ownership of electric vehicles. The purpose of this plan is to ensure a reliable eco-system by the year 2020. As per the estimated given by the government, there could be around 6 to 7 million electric vehicles.
The government has already moved ahead with the pilot project for Delhi in 2 parts. The first part is going to be handled by a special SPV targeting the corporate sector. The second part will be used by the government to assess EVs for last mile connectivity.
The government is also framing a fuel policy which will be on papers in the next few months. The administered fuel price was abandoned in 2002 while the petrol pricing was freed in 2011.