Indian government may reward people for dumping petrol/diesel vehicles for electric cars

• The government is investing ₹94 billion to push eco-friendly cars.
  
• Incentives of up to ₹5 million will be offered.
  
• Up to 25% subsidy to be offered for parts manufacturers.

The Indian government is planning a ₹94 billion scheme for electrical and hybrid vehicles and may offer incentives ranging from ₹30,000 to ₹5 million to those buying electric vehicles. The scheme will be for citizens who stop using old petrol or diesel vehicles and will be followed by SOPs for manufacturing parts, such as motors, in the country.

According to the Economic Times, the same SOPs will be available to individuals who give up their pre-BS III vehicles for electric cars. A certificate from an approved scrapping needs to be submitted to avail the offer. The government is also planning to spend about ₹10 billion for setting up charging stations across the country. Cab aggregators and bus owners are expected to get SOPs of up to ₹150,000 to ₹250,000 for vehicles that cost up to 1,500,000.

Below is the breakdown:

The department of heavy industries (DHI) has submitted a proposal to have at least one charging point in every nine square kilometres in all metros and major cities. There are also plans to set up charging points on both sides of the highway at every 25 km, along the Delhi-Jaipur, Delhi-Chandigarh, Chennai-Bengaluru, and Mumbai-Pune stretches.

In order to reduce the cost of electric vehicles and make them affordable for the general public, the Indian government reportedly plans to spend about ₹58 billion. The incentive being offered will cover over 500,000 electric vehicles and over 80% of these will be two and three-wheelers.

The government has also proposed to provide up to 25% subsidy special capital investment to manufacturers of motors, drive, powertrain, and controllers.

According to an Economic Times report, if the same amount was put in improving public transport by deploying buses and running them on cleaner fuel, at least five million eco-friendly busses could be run across the country.