New Delhi to Offer Subsidies for Electric Vehicles

The government of New Delhi expects to start offering subsidies to customers of electric vehicles from next week. A statement by the minister for transport, Kailash Gahlot, stated that the grants and other expected abdications would be accorded to all new electric vehicle users as early as from next week. After the Delhi Electric Vehicle Policy notification on August 7 this year, over 1,280 new electric vehicles have been registered. 

The Delhi government expects to offer better subsidies for all-electric vehicles, but the value will differ across the different types. Individuals who will be purchasing new electric cars will be allowed not to pay the tax for roads and registration. The rates for the road tax fall between four percent and ten percent of the vehicle’s cost, and the registration is at ₹3,000.

The main challenge which is facing this move by the Delhi government is that it is not yet clear whether the government will be able to offer subsidies and waivers to electric vehicle owners who made their purchases after August 7. According to official sourcing anonymity, a decision has not been made on whether to extend the subsidies to these owners or not. However, if a decision is reached and advanced to the owners, the department of transport will be required to notify the cutoff date as of August 7 for each purchase. 

The notification on the subsidies and waivers by the government has been faced with delays. When questioned about that, Ghalot emphasized that creating the required software to aid in the disbursement had taken some time, but now that it is ready, testing would be carried out, followed by launching in the coming week.

Issuing the subsidies is expected to be quick and straightforward, taking a timespan of two days. The software will be made available to the automobile dealers, where they will be required to key in the customers’ details on site. In a span of forty-eight hours, the amount will be sent to the buyer’s accounts after undergoing verification by the motor licensing board officials.

According to a senior government official, a state electric vehicle fund will be expected to be established and rolled out in the coming days. The official further said that the scheduled fund would commence with an initial input of ₹20 crores from the government. The incentive is also expected to be put in place for road users who shift to EVs from fossil-fuelled vehicles.