NEW DELHI: Electric and hybrid vehicles will be made available to buyers on an “upfront reduced price”, Government has told the National Green Tribunal (NGT), saying it was expecting a sale of six to seven million such vehicles by 2020.
Ministry of Heavy Industries and Public Enterprises said that backbone of government’s pilot scheme — Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India (FAME-India) — was demand creation by way of subsidizing the higher cost and it would inturn increase manufacturing of such vehicles.
“Under FAME-India Scheme of the Government, the demand incentive is being made available for buyers (end users/ consumers) in the form of an upfront reduced price to enable wider adoption,” the ministry said in its affidavit filed in the NGT.
The affidavit was filed in pursuance to the tribunal’s direction which had asked the ministry to give the status of electric and hybrid vehicles in the country and also about the benefits it was considering for those who wish to dispose of their old vehicles.
Elaborating the details, the ministry said that proposed incentive would depend upon the type of vehicle, its battery technology and hybrid or electric technology used in it.
“Government is expecting sale of 6-7 million hybrid and electric vehicles by 2020 which will result into estimated saving of 9,500 million litres of fossil fuels worth more than 60,000 crores and reduction of 2 million tonnes of GHG (Greenhouse Gas emission) as envisages in NEMMP (National Electric Mobility Mission Plan) 2020,” it said.
“Further, the Government is considering proposals for sanctioning grants under the scheme for pilot projects and R&D (research and development) projects for enhancement of hybrid and electric technology in the country, especially in public transportation system,” the affidavit said.
It said that some projects were also approved under auto cess fund of the Government.
The ministry said that “appreciating” viability of hybrid and electric transport system in India, NEMMP 2020 envisages introduction of six to seven million such vehicles by 2020 under this mission.
The tribunal would hear the matter on August 2.