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Delhi: 30% subsidy on battery-run vehicles

As the price of petrol and diesel touches new highs, Delhiites can explore using alternate sources of energy. In an initiative to promote environment-friendly battery-operated vehicles, the Delhi government will be offering a 30% subsidy on their purchase. 



 

The subsidy will come from the diesel cess levied about three months earlier — it has already earned Rs 10 crore for the government.

"Delhi has about 5.4 million vehicles of which 30% are diesel-operated. We are trying to motivate consumers to switch to the environment-friendly option, not only in the four-wheeler segment but also in the two and three-wheeler one," says environment secretary J K Dadoo. "This would be specially beneficial for those families that own more than one vehicle," he said. The government may be focusing on diesel but this is also a good alternative for those who own vehicles running on petrol.

The government’s decision was probably spurred by the fact that Delhi has recorded extremely high levels of suspended particulate matter and respirable suspended particulate matter. But for Delhiites, a stronger incentive for moving to battery-operated vehicles is the high price of fuel.

"Battery operated cars, for instance, can be charged at a cost of 50p/km. They are clutchless, gearless, noiseless and completely pollution free," said Dadoo.

However, there are very few manufacturers of battery-operated vehicles in India. Reva is the only company manufacturing four-wheelers. The company is set to open its showroom in Delhi shortly. Those who purchase the vehicle for use in Delhi will get a refund on the 12.5% VAT. Those only registering the vehicle in the Capital will get a refund of 2%. Meanwhile, all dealers will get a 15% subsidy on the base price of each vehicle. So, for someone buying the Rs 3.5 lakh model for use in Delhi, the almost 30% rebate would mean the car would cost about Rs 2.3 lakh.

For the government, with the department of renewable energy giving them an additional subsidy of Rs 75,000 per vehicle, they would be even cheaper. Dadoo claimed the government had enough resources for 1,000 vehicles immediately. "We have managed to collect Rs 10 crore in three months from the diesel cess which we can use. The fund will keep getting replenished," he said.

Source : Times of India - India,  dated 07/06/2008

 

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